The Key Takeaways
Recent developments are driving STRK’s price increase of 23%.
The rally has been driven by Starknet’s integration of Bitcoin as an execution layer, the staking feature, and increasing liquidity.
What are the signs that STRK could continue to grow?
Positive funding rates, declining sales pressure, and increased on-chain activity all point towards a bullish outlook.
Starknet [STRK] There have been several major developments within the last couple of days. This has naturally translated into a growing demand for this asset.
Starknet was announced as a new execution layer in the most recent Starknet update. Bitcoin [BTC] The initiative will receive 100 millions STRK to support the staking.
This momentum has also been fueled by other factors, such as massive inflows of liquidity from spot investors and chain-wide investors. What is the effect? CoinMarketCap reported a price increase of 23% for STRK. This is the highest in the cryptocurrency market.
How does that affect the price? AMBCrypto has taken a look at market dynamics.
The inflow of liquidity is on the rise
The strong performance by STRK is accompanied by a large inflow of capital to the perpetual market.
CoinGlass reported that the Open Interest grew to $172 Million at press time.
Contextually, such inflows do not necessarily determine whether the market is bullish or bearish—the Weighted Funding Rate provides that insight.
CoinGlass
Investors are making bets on the upside potential of the market, as data over the period shows the rate has turned positive to 0.0345%.
Investors have also begun to slow down their selling on the spot markets.
As of the 7th October, after peaking at 2,57 millions dollars in daily sales volume, it dropped dramatically to 220,000.
The combination of increasing capital inflows with declining selling pressure creates a favorable outlook for STRK. On-chain investors also play a key role.
Rally participation by the chain
The increase in the market’s liquidity has mirrored a significant rise in participation on-chain.
Artemis reports that Daily Active Addresses reached a record high 51,100 as at the time of this writing. This is a rebound from earlier declines.
Source: Artemis
A slight rise in transactions, to 3,4 million, also signals a renewed interest on the part of investors.
It also translated into higher Total Value Locked (TVL)In the last day,, which rose 4.4% to $221 millions, reached its highest level in January. It marks a reverse of the prior downtrend.
STRK near-term forecast
STRK is poised to experience a substantial upside in the short term given the direction of the market.
You can also find out more about the following: liquidation map supports View showing large order clusters around price levels higher than the current level. A setup which may trigger an upward move.
CoinGlass
Price movements are often influenced by zones of high liquidity. These areas act as magnets, pulling the prices in their direction.
STRK seems well-positioned, based on Starknet’s continuing ecosystem growth and the increasing activity in its perpetual market.
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
“ItsDailyCrypto is not responsible for any activities you perform outside ItsDailyCrypto.”
Source: ambcrypto.com
