Starknet, a public chain valued at 8 billion dollars, stopped block production for 4 hours, yet no one cared? The VC coin dilemma of the L2 demo supported by Vitalik.

Ethereum Layer 2 Starknet has been down for over four hours, KOL: no one cares.

Starknet's official statement: "Starknet is currently down. Our team is actively investigating the issue and working hard to restore full functionality as soon as possible. We will update information immediately when we have new developments. Thank you for your patience." Four hours have passed, yet there are only 36,000 views. KOLs even mockingly suggested that if the official announcement hadn't been made, no one might have known at all.

Before the deadline ( UTC+8 on September 2nd at 4 PM, the blockchain explorer showed that there had been no blocks produced for more than four hours. This should be big news on any public chain, but in the case of Starknet, the market is instead filled with endless sighs over the era of VC coins.

Note: As of 5:28 PM Taiwan time, Starknet has resumed block production.

Starknet was once valued at 8 billion dollars, now it is worth only 1.2 billion dollars.

Starknet is an Ethereum Layer 2 that uses zero-knowledge proofs and is one of the few blockchain projects backed by Ethereum founder Vitalik Buterin. Since 2018, it has gone through five rounds of funding, raising a total of $261 million. The investment lineup includes well-known investors such as Paradigm, Pantera, Redpoint Capital, Coinbase, Polychain, ConsenSys, Multicoin, and Vitalik Buterin.

Starknet raised $225 million in three rounds of funding in 2021 and 2022, with a valuation even reaching $8 billion. At that time, it was the peak period for VC coins, with various high-valuation projects flooding in, but in contrast to the current fully diluted valuation of only $1.2 billion, one can only say it is quite lamentable.

Retail investors awaken and no longer take the bait, creating nihilistic meme coins.

The biggest problem with these VC projects is the inflated valuations, while the products themselves lack users. The data speaks for itself; DeFiLlama shows that Starknet's chain revenue over the past 24 hours is about 25,000 USD. Voyager browser shows that Starknet has 39,000 daily active users, however, Dune data indicates that the daily active users are only in single digits ). Both calculations are based on the number of addresses that conducted transactions daily (.

The case of Starknet is a microcosm of every VC coin, with valuations in the billions, yet unable to deliver marketable products. By creating expectations for airdrops, studios help beautify the data, which is then handed over to institutions to raise more funds. Initially, retail investors were lured into the vision painted by institutions, but they gradually realized they were just taking the fall, while project teams focused on how to exit liquidity rather than improving the product. The market is gradually falling into a dilemma of having no one to take over, VC coins are waning, and meme coins that emphasize nihilism are rising.

This article discusses why no one cares that the $8 billion valued public chain Starknet stopped block production for 4 hours? The VC token dilemma of the Layer 2 demonstration supported by Vitalik first appeared in Chain News ABMedia.