Ethereum News Today: Institutional Selling Pressures Starknet's STRK Despite Strong Fundamentals

Starknet's (STRK) price momentum has shown signs of weakening following a significant token transfer by Ethereum co-founder Vitalik Buterin. According to blockchain analytics firm Lookonchain, Buterin moved 6.29 million STRK tokens, valued at approximately $1.09 million, to the Methuselah Foundation, a non-profit medical research organization Invezz^[1]. The foundation subsequently sold 607,318 STRK tokens for $104,640 in ETH within hours of receiving the transfer Invezz^[1]. This event coincided with a broader 2% decline in the global cryptocurrency market cap, which fell to $4.03 trillion in the preceding 24 hours Invezz^[1].

STRK initially surged over 16% in the days leading up to the transaction, reaching an intraday high of $0.1779 from a low of $0.1529 Invezz^[1]. However, the token lost 10% of its value shortly after the transfers, trading at $0.161 at the time of writing Invezz^[1]. The sell-off by key holders, including the Methuselah Foundation, amplified bearish sentiment, raising concerns about short-term volatility.

The transaction highlights the influence of large token movements on market psychology. Buterin's earlier donations to the Methuselah Foundation and similar entities have drawn attention from the crypto community, as such transfers often coincide with price fluctuations Invezz^[1]. Analysts note that the timing of the sale-amid a recent 10% weekly gain and 25% monthly rise for STRK-suggests profit-taking by institutional or early backers Invezz^[1].

Technical indicators reinforce the bearish shift. STRK's 24-hour trading volume increased by over 100%, but the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) suggest waning upward momentum Invezz^[1]. The token's price has since retreated from its intraday high, trading below the $0.17 level.

Despite the near-term weakness, Starknet's fundamentals remain robust. The platform has expanded its ecosystem with features like the Kakarot zkEVM, which aims to attract Ethereum developers by supporting Solidity-based smart contracts Coin Edition^[4]. Additionally, STRK's staking mechanism and governance rights, set to launch in late 2024, position the token for long-term utility .

Market participants remain divided on STRK's future trajectory. While some traders anticipate a rebound, citing accumulation patterns and potential breakouts above $0.60 and $0.80 , others warn of prolonged selling pressure from large holders Invezz^[1]. A crypto analyst highlighted STRK's potential to reach $0.80, a 400% gain from its current price, but emphasized the need for broader market support Invezz^[1].

Starknet's TVL currently stands at $629 million, placing it among the top Ethereum Layer-2 solutions . However, it trails significantly behind Coinbase's Base network, which holds a 33% market share in the Layer-2 space .