Starknet (STRK) Sees Weekly High Transaction Volume With Layer 2 Interest

This past week has been marked by a surge in the values of Layer 2(L2) tokens. For example, the prices of leading L2 tokens such as Optimism (OP), Arbitrum (ARB), and Polygon (MATIC) have risen by 35%, 17%, and 14%, respectively. 

STRK, the native token of the ZK-Rollup platform Starknet, has witnessed a 16% price growth during the review period. As of this writing, the altcoin trades at $0.55.

Starknet Sees Surge in Transaction Volume

The uptick in demand for STRK last week pushed its daily transaction volume to a seven-day high of $38.31 million on July 11. This represented a 15% spike from the $33 million recorded in daily transaction volume the previous day.

Starknet Transactions Volume. Source: IntoTheBlock

STRK’s current price rally began on July 5 after it fell to an all-time low of $0.46. Since then, the altcoin’s price has skyrocketed by over 19%. 

When an increase in daily transaction volume accompanies an asset’s price rally, it indicates a strong uptrend in market activity. 

This correlation suggests that more investors are buying the asset, driving its price higher. It also signals that the frequency and volume of transactions occurring each day are increasing.

STRK’s price surge has also led to an uptick in its derivatives market activity in the past week. At $51.35 million, its futures open interest has risen by 10% during that period.

Read more: A Deep Dive Into Starkware, StarkNet, and StarkEx

Starknet Futures Open Interest. Source: Coinglass

An asset’s futures open interest measures the total number of outstanding futures contracts that have not been settled. When it spikes, it means that more traders are opening new positions. This is a bullish signal.

STRK Price Prediction: The Uptrend is not Strong Enough

Readings from STRK’s Aroon Up Line observed on a daily chart suggest that the current uptrend might not be enough to sustain the rally.

As of this writing, STRK’s Aroon Up Line is 0%. The Aroon indicator identifies an asset’s price strength and potential reversal points.  When the up line is at or close to zero,  the uptrend is weak, and the most recent high was reached a long time ago.

This means that STRK is at risk of losing its most recent gains. If this happens, its price will drop to $0.51.

Starknet Analysis. Source: TradingView

However, if the token sustains the uptrend, its price might climb to $0.57.

The post Starknet (STRK) Sees Weekly High Transaction Volume With Layer 2 Interest appeared first on BeInCrypto.