"Revenue from Starknet has dropped sharply from a peak of nearly $6 million in a single month in late 2023 to about $48,000 so far in April 2026, according to data from Defillama. The decline reflects both company-specific challenges and wider industry trends."
"A key factor has been Ethereum's EIP-4844 upgrade, introduced in March 2024, which significantly reduced transaction costs on Layer 2 networks. While the change improved efficiency for users, it also compressed fee revenue across the sector, affecting Starknet and its competitors alike."
"Despite the revenue drop, Starknet continues to hold nearly $242 million in total value locked, suggesting that user activity has not disappeared but is generating less income."
"Ben-Sasson said the company now needs to convert its technical strengths into meaningful usage and revenue, indicating a shift toward building proprietary applications, rather than relying solely on infrastructure that depends on external ecosystems."
Starkware is undergoing significant restructuring due to a drastic revenue decline from its Starknet network, falling from nearly $6 million in late 2023 to about $48,000 in April 2026. This decline is attributed to Ethereum's EIP-4844 upgrade, which reduced transaction fees across Layer 2 networks. Despite holding $242 million in total value locked, Starknet's income has diminished. CEO Eli Ben-Sasson announced a shift towards creating proprietary applications to generate sustainable revenue, moving away from a pure scaling focus.
Read at news.bitcoin.com
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