Starknet Lost 75% Liquidity Due to Extended Departure

Major decentralized exchange Extended has moved its operations from Starknet to Circle's Arc blockchain. As a result, the network lost a key DeFi protocol.

The scale of liquidity outflow proved significant: TVL in the ecosystem dropped from $158 million to $42 million. The protocol accounted for about 74% of the entire network's liquidity.

Main consequences of the migration:

• Sharp drop in total value locked (TVL) in Starknet's DeFi sector
• Loss of the main source of trading commissions and perpetual futures trading volume
• Liquidity reduction by more than 70% in a single day

Amidst these events, the community supported research into transforming Starknet into an independent post-quantum L1 blockchain. Social media is already discussing the possibility of the network shutting down, but no official announcements regarding cessation of operations have been made.