Starknet loses liquidity after Extended exchange departure

The Starknet network recorded a sharp decline in DeFi liquidity amid the migration of its key partner. The Extended exchange moved its operations to Circle's Arc blockchain, leading to a critical drop in protocol metrics.

Total Value Locked (TVL) in the ecosystem dropped from $158 million to $42 million. The Extended platform accounted for approximately 74% of all liquidity in Starknet's DeFi sector.

The loss of one of the main DeFi protocols directly impacted trading activity. Daily volume for perpetual futures trading stood at around $280 million before the exchange's transition, after which it fell to zero.

The migration occurred following community approval of a study on transitioning Starknet to an independent post-quantum L1 blockchain. Speculation about a potential shutdown has circulated on social media, although there are no official plans to cease operations.