STRK Token Rises 30% as Starknet Considers Moving to Layer 1

WHY IT MATTERS

To understand this story, it helps to know the difference between a Layer 1 and a Layer 2 blockchain. Think of Layer 1 as a main highway — it is a standalone blockchain like Ethereum or Bitcoin that handles its own security and processes transactions independently. A Layer 2 is more like an express lane built on top of that highway — it processes transactions faster and more cheaply but ultimately relies on the main highway (Layer 1) for security and final record-keeping. Starknet currently operates as a Layer 2 on Ethereum, meaning it borrows Ethereum's security. If it moves to become its own Layer 1, it would be like building an entirely new highway instead of using Ethereum's. This could give Starknet more independence but would also mean it needs to establish its own security system. The STRK token is the native cryptocurrency of the Starknet network, and its price moved sharply in response to this news, reflecting the market's reaction to the potential change.