- Starknet aims to scale both Bitcoin and Ethereum through shared ZK-based infrastructure.
- ETH and BTC prices rise despite sharp drops in trading volume, signaling cautious optimism.
- Cross-chain interoperability could enable new decentralized finance use cases and asset flows.
Layer 2 protocol Starknet is drawing increased interest because of its possibility of scaling Bitcoin and Ethereum simultaneously. Industry figures, including Ethereum co-founder Vitalik Buterin and two early Bitcoin adopters, have emphasized integrating these two major blockchain networks through a shared scaling solution. This development comes as both Bitcoin and Ethereum register price increases during a period of declining trading activity.
Starknet’s approach enables scaling for Bitcoin and Ethereum, the two largest digital currencies by market capitalization. According to developers and long-time industry participants, the ability to facilitate the trustless and efficient movement of assets between the Bitcoin and Ethereum networks is seen as a major step forward.
The move could create easier channels for decentralized asset exchange using the deep liquidity pools of both networks. Starknet’s compatibility with zero-knowledge (ZK) technology and its experienced development team are noted as technical strengths that position the protocol to handle cross-chain flows efficiently.
Vitalik Buterin highlighted that increasing interoperability between Ethereum and Bitcoin could allow for broader decentralized finance use cases, including new security structures and decentralized exchanges supporting BTC and ETH pairs. He further stated that decentralizing the exchange layer is necessary, given recurring issues with centralized platforms.
Ethereum Maintains Position Above $1,800
Following these updates, Ethereum was trading at $1,807.19 at the time of writing, marking a 1.55% increase over the past 24 hours, based on CoinMarketCap data. The asset’s market capitalization stands at $218.07 billion, mirroring the same percentage gain. However, 24-hour trading volume fell by 22.38%, reaching $13.12 billion.
Chart data shows a major upward price movement starting late April 4, when ETH jumped from approximately $1,779.60 to over $1,820. Although minor price fluctuations followed, Ethereum held above the $1,800 level through April 5.
The network’s total and circulating supply was recorded at 120.66 million ETH, with no fixed maximum supply. The volume-to-market cap ratio stands at 6.03%, indicating moderate trading activity relative to the asset’s total value.
Bitcoin Trades Above $83K as Volume Declines
Bitcoin is currently priced at $83,445.91, showing a 1.08% gain over the past 24 hours. Its market capitalization now totals $1.65 trillion, reflecting a 1.07% increase. Meanwhile, 24-hour trading volume dropped from 22.17% to $32.15 billion.
Price activity indicates a late-day surge on April 4, with Bitcoin rising from around $82,660 to above $84,000 before consolidating near the $83,500 level. Performance remained steady with minor fluctuations into April 5.
Currently, Bitcoin’s supply is 19.84 million, while the maximum supply of Bitcoin is 21 million. An increase in fully diluted valuation is equivalent to the current market capitalization of $1.75 trillion. The volume-to-market capitalization ratio is 1.94%, indicating low trading activity despite the higher price.
