
Starknet demonstrates exceptional performance capabilities that establish it as a leading Layer 2 scaling solution. The network achieves 4,200 transactions per second, significantly outperforming competing platforms in the ecosystem. Transaction costs on Starknet remain remarkably low, with fees as minimal as $0.0009 on certain exchanges and a market median of $0.47, maintaining sub-$0.003 average costs during normal network conditions.
| Metric | Starknet (STRK) | Arbitrum (ARB) | Optimism (OP) |
|---|---|---|---|
| TPS | 4,200 | 46.34 | 19.99 |
| Max TPS | 4,200+ | 40,000 | 216.2 |
| Avg Transaction Fee | $0.0009-$0.47 | $0.01072 | $0.001191 |
Starknet's fee structure comprises six components including L1 gas, L1 gas price, L2 gas, L2 gas price, and L1 data gas, providing transparent and efficient cost calculation. This architectural advantage enables users to settle transactions with minimal expense while maintaining security through validity proofs. The network's design prioritizes efficient transaction batching, allowing it to process larger volumes at substantially reduced costs compared to alternative Layer 2 solutions. These performance metrics underscore Starknet's capability to handle high-throughput applications while delivering cost-effective transaction execution, making it particularly attractive for users seeking optimal efficiency in decentralized finance and other blockchain applications requiring frequent, low-cost interactions.
The valuation disparity between Starknet and Arbitrum reflects their different stages of market maturity and ecosystem development. As of December 2025, the market capitalization contrast reveals substantial differences in investor confidence and adoption levels across these Layer 2 solutions.
| Metric | STRK | ARB |
|---|---|---|
| Market Capitalization | $511.2 Million | $1.69 Billion |
| Valuation Multiple | 1x | 3.3x |
| Circulating Supply | 4.96 Billion | 5.62 Billion |
| Fully Diluted Valuation | $795.5 Million | $5.89 Billion |
Arbitrum's superior market valuation stems from its established position commanding 60% of the Layer 2 market share with $18 billion in total value locked. The platform processes $7.8 billion in daily trading volume, demonstrating robust liquidity and network effects. Starknet, despite featuring innovative Cairo language infrastructure and STARK proof technology, maintains comparatively lower adoption metrics with $710.38 million TVL as of November 2025.
The three-fold valuation gap underscores how market participants price ecosystem maturity differently. Arbitrum's extended operational history and broader developer adoption justify its premium positioning. However, Starknet's significantly lower market capitalization presents distinct considerations for investors evaluating asymmetric risk-reward profiles within the Layer 2 competitive landscape. This valuation differential will likely persist until Starknet demonstrates comparable adoption velocity and ecosystem expansion metrics.
Starknet's competitive positioning in the Layer 2 ecosystem hinges on two fundamental technical advantages that distinguish it from alternative scaling solutions. The platform's STARK-based zero-knowledge proof system delivers superior cryptographic efficiency compared to conventional rollup architectures. Through innovations like the Stwo prover and Mersenne prime optimization (M31), Starknet has dramatically reduced proof generation costs and computational overhead, enabling transaction throughput exceeding 10,000 TPS while maintaining Ethereum's robust security guarantees.
The Bitcoin integration roadmap represents Starknet's strategic expansion beyond Ethereum dominance. By incorporating LayerZero cross-chain messaging protocols and enabling seamless Bitcoin asset transfers, Starknet addresses market demand for unified liquidity across blockchain ecosystems. This interoperability capability creates tangible utility advantages, allowing developers to build applications that span multiple settlement layers without sacrificing security or decentralization.
| Feature | Starknet Advantage |
|---|---|
| Proof Technology | STARK-based with M31 optimization |
| Scalability Target | 10,000+ TPS |
| Cross-Chain Integration | Bitcoin and Ethereum settlement |
| Security Model | Full Ethereum validation |
These technical differentiators position Starknet as an infrastructure layer serving emerging decentralized finance applications requiring both scalability and asset interoperability across fragmented blockchain networks.
Starknet has demonstrated remarkable momentum in user adoption since June 2025, with active users surging 5x during this period. This explosive growth represents more than a statistic—it signals genuine validation of the platform's technology and value proposition within the Layer 2 scaling ecosystem.
The significance of this user expansion becomes evident when examining the broader context of Starknet's trajectory. As a ZK-Rollup solution built on Ethereum, the platform enables decentralized applications to scale without compromising security. The 5x growth spike indicates that users increasingly recognize this technical advantage, particularly as developers seek efficient solutions for high-throughput operations.
| Metric | Impact |
|---|---|
| 5x active user growth | Strong platform adoption validation |
| Layer 2 positioning | Competitive advantage in scaling solutions |
| Tech integration trends | Support for decentralized adoption strategies |
Market analysts attribute this momentum to several interconnected factors. Bitcoin staking integration sparked particularly strong demand, with platforms recording approximately $100 million in deposits. This institutional-grade activity validates the ecosystem's capacity to handle significant capital flows while maintaining operational efficiency.
The user adoption trajectory reflects confidence in Starknet's long-term viability. As layer 2 solutions compete intensely for market share, sustained user growth translates directly into network effects and protocol strength, positioning STRK favorably within the evolving Web3 infrastructure landscape.











