Ethereum L2 Starknet Faces Outage, STRK Price Dips

STRK Price Dips as Starknet Faces Service Outage

Starknet, a major player in the Ethereum layer 2 scaling solution, is currently facing a significant service outage. This disruption has led to a complete halt in block production for more than 20 minutes, prompting swift action from the team. Despite the team's assurance of transparency, the STRK token has already started to reflect the outage's impact.

Ethereum L2 Outage Details

In a recent X post, the Ethereum L2 network Starknet has revealed that the platform is currently facing some technical issues. With production blocked for about 20 minutes, the outage has sparked caution within the crypto community.

Addressing the issue, the platform assured users that an investigation is underway and a resolution will be implemented as soon as possible. The X post read,

Starknet is currently experiencing downtime. Our team is actively investigating the issue and working to restore full functionality as quickly as possible. We’ll share updates as soon as we know more. Thank you for your patience.

Although the team has acknowledged the issue, they haven’t disclosed the root cause. With the Starknet outage continuing without a clear explanation, the community remains worried. This network failure highlights the vulnerability of layer 2 networks as the transactions and block production still face issues.

Network Issues Follow v0.14.0 Upgrade

Notably, the service disruption comes on the heels of Starknet’s v0.14.0 upgrade on September 1. The upgrade introduced Tendermint-based decentralized sequencing that reduces block times to approximately 6 seconds and adds pre-confirmations for near-instant transaction finality. This major move brings a set of enhancements to boost the network's scalability, decentralization, and overall user experience.

STRK Price Plummets

As the technical glitch remains unresolved, the STRK price continues to be impacted. Immediately after the service outage, the STRK token hit a weekly low of $0.1202. Though the cryptocurrency managed to surge from this point, it is still hovering in the red zone.

At press time, STRK is trading at $0.1241, slightly up by 1.3%. While the crypto has surged by a notable 9% over the past month, it declined by about 2% in a week.

Despite technical issues and a price dip, the community remains optimistic about the token, which is evident from the 42% hike in the 24-hour trading volume. As of press time, the volume is recorded at $33.21 million.