Economy
What Is Starknet (STRK) & Is It A Good Investment?
High fees and slow transaction times on crypto networks like Ethereum and Bitcoin have long hindered blockchain’s mainstream adoption.
Starknet, a Layer 2 (L2) scaling solution, emerges as a promising answer to this challenge, leveraging advanced zero-knowledge rollup (ZK-rollup) technology to offer faster, cheaper transactions without sacrificing security.
Keep reading to learn what Starknet is, how it works, and whether its native token, STRK, represents a sound investment opportunity.
TL;DR
- Starknet is a ZK-Rollup Layer 2 solution built for Ethereum, enabling faster and cheaper transactions, that is also evolving into an execution layer for Bitcoin.
- STRK is the native token used for governance and paying transaction fees.
- Starknet’s scalability and developer-friendly tools make it a strong contender in the L2 ecosystem.
What Is Starknet?
Starknet is a permissionless, decentralized Validity Rollup (ZK-Rollup) Layer 2 network. It scales Ethereum by moving computation off-chain while maintaining security via STARK (Scalable, Transparent ARgument of Knowledge) proofs, and has recently also emerged as an execution layer for Bitcoin.
Instead of processing each transaction on the main chain, Starknet bundles thousands into a single, verifiable proof. This proof is then submitted to the main chain for efficient verification, significantly reducing network load, increasing throughput, and lowering transaction fees.
Starknet was developed by StarkWare Industries, a leader in cryptographic research. It uses its own Turing-complete programming language, Cairo, designed for high efficiency in ZK-proof generation, making it a powerful tool for developers building scalable dApps.
Key Features of Starknet
Now, let’s look at some distinct features that make Starknet stand out as a Layer 2 network.
- Native account abstraction: Accounts on Starknet are smart contracts, allowing programmable logic such as multisig, session keys, and custom nonce management.
- SHARP/SNOS proof architecture: Blocks are executed off‑chain, generating proofs that compress state transitions to be verified on Ethereum, ensuring trust without on‑chain re‑execution.
- StarkGate bridge: Facilitates bridging between Ethereum (and now also Bitcoin) and Starknet
- Cairo programming language: Cairo’s design prioritizes efficient STARK proof generation, making it crucial to Starknet’s scaling solution.
- Decentralized & permissionless: Anyone can deploy dApps, and validators ensure network security.
What Is the STRK Token?
The STRK token is the lifeblood of the Starknet ecosystem, serving several critical functions:
- Transaction fees: Users can pay for transactions on the Starknet network using STRK.
- Governance: STRK holders can participate in the governance of the network, voting on proposals that will shape its future development.
- Staking (soon): As the network becomes more decentralized, STRK will be used for staking, allowing token holders to participate in the consensus mechanism and earn rewards for securing the network.
Token Distribution and Supply
The initial distribution of the STRK token was one of the most anticipated airdrops in crypto history, with a significant portion of the supply allocated to early users, developers, and other contributors to the ecosystem.
The token has a fixed maximum supply of 10 billion STRK, with portions allocated to various stakeholders including the Starknet Foundation, early contributors, investors, and community incentives. Token allocation is as follows:
| Recipient | Percentage | Purpose |
| Community & Grants | 50.1% | Reward developers, users, and contributors |
| Core Contributors | 32.9% | Compensate StarkWare team and early developers |
| Investors | 17% | Support from early backers and strategic partners |
The tokens are released gradually over several years to prevent sudden market inflation. This model is designed to incentivize long-term ecosystem development while progressively decentralizing control to the community.
Since its launch in February 2024, the price of STRK has seen significant volatility. Its value, like other cryptocurrencies, is driven by market demand and the network’s growth.
Source: Coingecko
Today, traders on various exchanges can acquire the token through different trading pairs, and many platforms even allow you to buy STRK with BTC.
Users looking to cash out STRK typically do so by transferring it to major cryptocurrency exchanges that support the token and then converting it to other cryptocurrencies or fiat currencies.
Is STRK A Good Investment?
Image source: Starknet
Evaluating STRK requires an analysis of its technology, ecosystem, and market position.
Technological Strength
STARK proofs offer post-quantum security and scalability advantages without trusted setups. Starknet’s native account abstraction supports user-focused innovations like automated wallet recovery and batched transactions, boosting usability.
Ecosystem Growth
Starknet is cultivating a diverse ecosystem, spanning DeFi, NFTs, and gaming. Developer grants, hackathons, and toolkits encourage adoption and dApp innovation.
A growing developer base and increased app deployment can amplify network value.
Competitive Landscape
Starknet competes with other L2s like Arbitrum, Optimism, zkSync, and Polygon zkEVM. Its success depends on consistent technical progress, user acquisition, and developer traction.
Market sentiment and macroeconomic factors will also influence STRK’s price performance.
Token Utility
STRK’s role in governance, staking, and (optionally) fees ties its value to network activity. Higher adoption could increase demand for STRK, enhancing its utility. Still, potential investors should review distribution timelines and circulating supply data before entering.
Potential Risks & Considerations Before Investing In STRK
Despite the promising indicators, investing in STRK also poses some significant risks and challenges, which we expound below:
- Market competition: Starknet is one of many L2 solutions. Sustained innovation is required to maintain relevance.
- Developer onboarding: Cairo’s unfamiliarity may deter some Ethereum developers despite its advantages.
- Token distribution concerns: Early allocations and vesting schedules could affect supply dynamics.
- Volatility: STRK, like most altcoins, is susceptible to rapid price fluctuations driven by broader crypto market sentiment.
Final Verdict: Should You Invest in STRK?
Starknet stands out for its technical approach and developer-first design. With STARK proofs and native account abstraction, it offers compelling solutions to Ethereum’s scalability issues, and its making headways in the Bitcoin L2 ecosystem too.
That said, investing in STRK involves risk.
While its long-term prospects look potentially promising, real-world adoption and network maturity will determine its sustainability. Investors should assess their risk tolerance and stay informed as the ecosystem evolves.
By Adedapo Adesanya
The Nigeria Customs Service (NCS) is seeking a reduction in import duty exemptions, which rose to N34 trillion, limiting its ability to increase its revenue generation threshold.
The Comptroller-General of the Customs Service, Mr Adewale Adeniyi, disclosed that the value of import duty exemption certificate approvals increased to that level in 2025, describing the policy as one of the major factors restricting its revenue generation.
At an investigative session of the Senate Committee on Finance with revenue-generating agencies in Abuja on Monday, Mr Adeniyi explained that government fiscal policies have continued to impact the revenue-generating capacity of the Customs Service, both positively and negatively.
“The NCS would have generated significantly higher revenue over the years if not for government-approved import duty waivers and other external factors affecting collections,” he said.
He added that the Import Duty Exemption Certificate scheme, introduced in March 2020, accounted for about N34 trillion in approvals in 2025, with nearly 60 per cent covering duty-free importation of military hardware due to Nigeria’s prevailing security challenges.
Other government-backed duty waivers, he noted, covered the importation of Compressed Natural Gas (CNG), electric and hybrid vehicles, healthcare equipment and medical supplies, industrial machinery and manufacturing inputs, as well as food import intervention programmes.
While acknowledging the impact of the waivers on Customs revenue, Mr Adeniyi argued that fiscal policy should not be assessed solely on the basis of revenue generation but also on its broader economic and social objectives.
He, however, urged the federal government to establish stronger monitoring mechanisms to ensure beneficiaries of duty waivers deliver the intended economic outcomes, including lower consumer prices, increased local production and improved healthcare access.
The committee also expressed displeasure over the absence of several heads of government agencies invited to the hearing, including the Nigerian Civil Aviation Authority (NCAA), Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), Industrial Training Fund (ITF), and the Federal Medical Centre (FMC), Jabi.
The Chairman of the Senate Committee on Finance, Mr Sani Musa, warned that the affected chief executives must appear at the committee’s next sitting or face severe sanctions under the Senate’s rules.
In the competitive world of online trading, finding a trading brokerage partner that balances reliability, technological innovation, and accessible conditions is essential. Headway broker has emerged as a significant player, currently serving over 4 million users globally.
In this article, we take a detailed look at what makes this broker for trading a notable option for both novice and experienced traders.
Headway Regulatory Foundation and Safety
Safety is the cornerstone of any trading relationship. Headway broker operates under the regulation and licensing of the Financial Sector Conduct Authority (FSCA). This regulatory oversight ensures that the broker adheres to strictly defined standards for transparency and operational conduct, providing traders with an added layer of security and confidence when managing their portfolios.
Trading Platforms and Instruments
Efficiency in trading Forex and other markets is driven by the tools at your disposal. Headway provides a robust technological trading ecosystem:
Industry-Standard Platforms: The broker fully supports MetaTrader 4 (MT4) and MetaTrader 5 (MT5), the most widely used platforms for technical analysis and automated trading.
Proprietary Mobile App: For traders who prioritize mobility, Headway offers its own custom-built trading app. It is readily available for download on both Google Play and the App Store, allowing for seamless account management and trading on the go.
Diverse Market Access: Traders have a wide range of opportunities with access to over 300 trading instruments, ensuring plenty of choice for different strategies and asset classes.
Trading Account Types Offered by Headway
Headway broker understands that every trader enters the market with a different level of experience:
Three Account Tiers: To ensure inclusivity, the broker offers three distinct types of accounts (Cent, Standard and Pro), tailored to suit different levels of expertise and capital requirements.
Demo Account: For those looking to refine their skills without financial risk, Headway provides a comprehensive demo trading account. This is the perfect environment to practice strategies, understand how the platform works, and gain confidence before transitioning to live trading.
Customer Support and Incentives
Headway supports its user base with comprehensive resources and financial incentives:
24/7 Technical Support: Market fluctuations happen at any time. Headway provides round-the-clock technical support for the traders, ensuring that help is always available whenever a question or issue arises.
150$ No Deposit Bonus: To help new traders get started, Headway offers a $150 no deposit bonus. This is an excellent way to test the broker’s execution speed and trading environment with zero initial risk.
IB Partnership Program: Beyond individual trading, Headway fosters growth through its Introducing Broker (IB) partnership program. This allows partners to build their business and earn commissions by referring new traders to the platform.
Conclusion
With its combination of FSCA regulation, a vast range of instruments, and modern platforms like MT4, MT5, and its own proprietary app, Headway FX broker provides a comprehensive environment for modern traders. Whether you are using the demo account to hone your skills or taking advantage of the 150 no deposit welcome bonus, this broker offers the stability and tools needed for your trading journey.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange rose by 0.40 per cent on Monday, July 13, buoyed by buying interest in 11 Plc, Central Securities Clearing System (CSCS) Plc and UBN Property Plc, which offset the profit-taking in Food Concepts Plc, the parent company of Chicken Republic.
11 Plc gained N20.69 to end at N227.64 per share compared with last Friday’s price of N206.95 per share, CSCS Plc grew by N1.83 to N91.48 per unit from N89.65 per unit, and UBN Property Plc added 1 Kobo to sell at N1.81 per share versus N1.80 per share.
On the flip side, Food Concepts Plc depreciated by 24 Kobo to close at N2.45 per unit, in contrast to the preceding session’s N2.69 per unit.
As a result, the market capitalisation increased by N9.2 billion to N2.587 trillion from N2.578 trillion, and the NASD Security Index (NSI) improved by 15.33 points to 4,311.67 points from 4,296.34 points.
Yesterday, the volume of securities traded by investors surged by 615.9 per cent to 9.1 million units from the previous 1.3 million units, and the value of securities rose by 997.1 per cent to N320.4 million from the preceding session’s N29.2 million, while the number of deals decreased by 12.5 per cent to 28 deals from last Friday’s 32 deals.
At the close of trades, Great Nigeria Insurance (GNI) Plc remained the most active stock by value on a year-to-date basis, with 3.4 billion units valued at N8.4 billion, followed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units worth N6.5 billion, and CSCS Plc with 73.9 million units exchanged for N5.2 billion.
GNI Plc also closed the session as the most traded stock by volume on a year-to-date basis, with 3.4 billion units sold for N8.4 billion, followed by Infracredit Plc with 2.3 billion units traded for N6.5 billion, and Resourcery Plc with 1.1 billion units transacted for N415.7 million.
