STARKNET Faces Mainnet Outage as Zero-Knowledge Proofs Market Grows

Starknet experienced an 18-minute mainnet outage due to a state conflict between its execution and proving layers, marking its second major disruption since 2025.

The zero-knowledge proofs (ZKP) market is projected to grow from $1.28 billion in 2025 to $7.59 billion by 2033 at a 22.1% compound annual growth rate (CAGR), driven by institutional adoption and Layer-2 protocol maturity.

Layer-2 protocols like zkSync Era, StarkNet, and Polygon zkEVM dominate 60% of ZKP transactions, offering scalable, low-cost solutions with $28 billion in Total Value Locked (TVL) according to market analysis.

Starknet, an Ethereum Layer 2 (L2) scaling network, faced a brief mainnet outage on January 11, 2026, due to a bug in its blockifier execution layer. The proving layer acted as a safeguard, ensuring the faulty execution never reached Ethereum's finality. Approximately 18 minutes of network activity was rolled back, requiring users to resubmit affected transactions after service resumed. Despite the outage, Starknet's TVL remained at $840 million, and average transaction fees stayed below one cent as reported.

The zero-knowledge proofs market is central to addressing blockchain's scalability-privacy-security trilemma. ZKP-based solutions are increasingly being adopted by institutions and enterprises to improve blockchain efficiency and security. Layer-2 solutions such as zkSync Era, Starknet, and Polygon zkEVM are leading the way in deploying ZKP technology. These protocols are not only achieving practical deployment but also

demonstrating robust financial metrics, including high throughput and sub-2-second finality.

The market for ZKPs is projected to grow significantly, reaching $7.59 billion by 2033. This growth is fueled by the maturation of Layer-1 and Layer-2 protocols that prioritize ZKP integration. Institutional adoption is accelerating, with ZKP-based infrastructure projects enabling 100,000+ transactions per second and sub-2-second finality for institutional-grade applications.

Starknet has committed to improving testing and code audits to prevent similar outages in the future. The team is implementing new fuzz-testing suites to compare blockifier execution results directly with the proving system. These tests will help identify edge-case interactions that could lead to incorrect state handling. In addition, Starknet plans to shorten the time between transaction execution and prover-compatible execution. This will allow mismatches to be detected sooner, limiting how much network activity would need to be rolled back.

The incident highlights the importance of the proving layer in Starknet's architecture. While the network's proving layer functioned as intended during the outage, ongoing testing and architectural changes are necessary to reduce the frequency of such disruptions. This outage follows a pattern of interruptions in Starknet's transition toward a more decentralized architecture.

What triggered Starknet's mainnet outage?

Starknet's mainnet outage on January 11, 2026, was caused by a software bug in its blockifier execution layer. The bug created a mismatch in network state handling, leading to an incorrect transaction execution. The issue was flagged by the proving layer before final settlement on Ethereum. This mechanism, which checks the correctness of transaction execution, is a core design principle of the Starknet architecture. Approximately 18 minutes of network activity was rolled back, meaning users had to resubmit transactions that were affected by the error.

The outage originated from a discrepancy in the handling of state changes between the blockifier and the proving layer. Specifically, the blockifier incorrectly remembered a state-writing that should have been discarded after a function reverted. This occurred under a specific combination of cross-function calls, variable writes, and reverts.

Why is the zero-knowledge proofs market growing rapidly?

The zero-knowledge proofs (ZKP) market is growing rapidly due to its ability to address blockchain's scalability-privacy-security trilemma. The market is projected to grow from $1.28 billion in 2025 to $7.59 billion by 2033 at a 22.1% CAGR according to industry analysis. This growth is driven by institutional adoption, enterprise applications, and the maturation of Layer-1 and Layer-2 protocols that prioritize ZKP integration.

Layer-2 solutions have become the proving ground for ZKP technology, with Ethereum's ecosystem leading the charge. Projects like zkSync Era, StarkNet, and Polygon zkEVM are not only achieving practical deployment but also demonstrating robust financial metrics. zkSync Era processes over 27 million transactions monthly while maintaining EVM compatibility and ZKP security. Starknet leverages STARK proofs to deliver high throughput and transparency, with platforms like dYdX reporting a 90% reduction in gas costs.

Polygon zkEVM has redefined accessibility by slashing transaction costs for Web3 gaming and NFT platforms—from $2–3 on Ethereum to under $0.05. Such use cases highlight ZKPs' role in mainstreaming blockchain beyond speculative finance. Collectively, these Layer-2 solutions account for over 60% of ZKP-based transactions and hold $28 billion in TVL.

What measures is Starknet taking to prevent future disruptions?

Starknet is implementing several measures to prevent future disruptions and improve network stability. The team is implementing new fuzz-testing suites to compare blockifier execution results directly with the proving system. These tests will help identify edge-case interactions that could lead to incorrect state handling. In addition, Starknet plans to shorten the time between transaction execution and prover-compatible execution. This will allow mismatches to be detected sooner, limiting how much network activity would need to be rolled back.

Starknet is also committed to improving testing and code audits to prevent similar incidents. The team is working on enhancing the blockifier's simulation capabilities to better align with the proving system. By doing so, they hope to reduce the frequency of mismatches and improve the overall stability of the network. The team is also implementing shorter execution windows to limit how much activity is affected in case of errors.

The incident underscores the importance of ongoing testing and architectural changes in the transition toward a more decentralized architecture. While the proving layer functioned as intended during the outage, the team is focused on reducing the frequency of such disruptions through continuous improvements and testing.