Starknet Weighs Ethereum Exit for Quantum Resistance
Starknet is exploring a move from an Ethereum Layer 2 to an independent Layer 1, potentially by 2027, to gain more control over post-quantum security upgrades. Founder Eli Ben-Sasson says Starknet could act faster than Ethereum, which is targeting full quantum resistance by the end of 2029. Starknet’s STARK proofs rely on hash functions rather than elliptic-curve cryptography, and the network has implemented post-quantum signature verification for transactions. Ben-Sasson has also warned that advances in AI could expose weaknesses in current cryptography, potentially before practical quantum computers arrive. The proposal remains exploratory, with no formal governance plan announced. Becoming an independent Layer 1 would require Starknet to build its own consensus and validator network and fund security and data availability. It could also reduce the network’s direct settlement link to Ethereum and access to Ethereum DeFi liquidity. STRK rose as much as 26% in 24 hours after the plan drew attention, but open interest climbed more than 53% and futures volume was about five times spot volume, pointing to substantial leverage behind the rally. The price response may therefore be volatile as traders weigh the security case against execution risks and the loss of Ethereum ties.
Neutral
The news has a positive long-term narrative for STRK: a faster path to post-quantum security could distinguish Starknet and support confidence in its technology. The immediate price reaction was strong, with STRK briefly gaining 26%, but the plan is not yet a formal proposal and would require major technical and economic changes. The sharp rise in open interest and futures volume far exceeding spot volume indicate leverage contributed to the move, raising the risk of liquidations and a rapid reversal. In the longer term, successful execution could support demand, while the costs of running an independent Layer 1 and reduced ties to Ethereum settlement and DeFi liquidity could weigh on adoption. Given the uncertainty and speculative positioning, the overall expected price impact on STRK is neutral.