StarkNet Mathematics involves understanding the potential value and market capitalization (MC) of the StarkNet token at launch in three different scenarios. This analysis considers the initial distribution of 700 million tokens and their doubling on April 15. The focus shifts from Fully Diluted Valuation (FDV), often seen as less relevant in bull markets, to a more practical approach based on MC.
Poor Scenario – MC Less Than $1 Billion
This category includes projects like Manta, Astar, Ronin, which are not seen as direct competitors to StarkNet. Tokens in this valuation range are considered more for accumulation rather than profit-taking, given their perceived lower competitive edge.
Average Scenario – MC $2-3 Billion
This scenario is deemed most logical, with a token price ranging between $2.8-3. This places StarkNet among strong Layer 2 (L2) assets, comparable to MNT and ARB. Notably, ARB is highlighted for its upcoming significant unlock event, which could potentially raise its MC to about $4 billion, reflecting the dynamism within the L2 sector.
Good Scenario – MC $3.5-4 Billion
At this valuation, StarkNet positions itself alongside or above notable projects like IMX, surpassing OP in value. The token price is anticipated to be between $5-6. This scenario suggests a strategic point for investors to lock in profits, given the limited upside for growth amidst stiff competition.
Conclusion
The guidance concludes with a pragmatic approach to profit-taking, suggesting investors to secure gains if the token appreciates by 50-100-200-300% of the deposit. A target price of $2.5-3 is viewed as reasonable, with an emphasis on the importance of not holding beyond April 15 due to potential significant changes in both the token’s value and its market dynamics.