{"id":71082,"date":"2026-04-13T18:47:47","date_gmt":"2026-04-13T18:47:47","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/starkware-cuts-jobs-as-starknet-revenue-collapses-crypto-news-bitcoin-news\/"},"modified":"2026-04-13T18:47:47","modified_gmt":"2026-04-13T18:47:47","slug":"starkware-cuts-jobs-as-starknet-revenue-collapses-crypto-news-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/starkware-cuts-jobs-as-starknet-revenue-collapses-crypto-news-bitcoin-news\/","title":{"rendered":"Starkware Cuts Jobs as Starknet Revenue Collapses \u2013 Crypto News Bitcoin News"},"content":{"rendered":"<p><b>(Originally posted on : Bitcoin News )<\/b><br \/>\n<\/p>\n<div>\n<p data-start=\"0\" data-end=\"17\"><strong data-start=\"0\" data-end=\"17\">Key Takeaways:<\/strong><\/p>\n<ul data-start=\"19\" data-end=\"299\" data-is-last-node=\"\" data-is-only-node=\"\">\n<li data-section-id=\"fl7iee\" data-start=\"19\" data-end=\"116\">Starkware revenue fell from close to $6 million in 2023 to $48 in April 2026, forcing layoffs and restructuring.<\/li>\n<li data-section-id=\"137pz5r\" data-start=\"117\" data-end=\"208\">EIP-4844 cut Starknet fees, compressing income despite $242 million TVL, reshaping <span>L2<\/span> economics.<\/li>\n<li data-section-id=\"1e1th9g\" data-start=\"209\" data-end=\"299\" data-is-last-node=\"\">CEO, Eli Ben-Sasson plans pivot to apps unit in 2026, aiming to build sustainable revenue streams.<\/li>\n<\/ul>\n<h2>Starknet Revenue Declines as Starkware Shifts Strategy<\/h2>\n<p>Starkware is cutting jobs and reorganizing its business after a steep collapse in revenue from its Starknet network, underscoring mounting pressure on <span>blockchain<\/span> infrastructure firms to generate sustainable income.<\/p>\n<p>The company said it will split into two independent units as part of a broader shift away from a pure scaling focus toward developing its own revenue-generating products. The changes were outlined by Chief Executive Eli Ben-Sasson during a company-wide address.<\/p>\n<p>Revenue from Starknet, a layer two ( <span>L2<\/span>) network built to scale <a href=\"https:\/\/buy.bitcoin.com\/eth\/\" target=\"_blank\" rel=\"noopener noreferrer\">Ethereum<\/a>, has dropped sharply from a peak of nearly $6 million in a single month in late 2023 to about $48,000 so far in April 2026, according to data from <a href=\"https:\/\/defillama.com\/chain\/starknet?currency=USD&amp;chainRevenue=true&amp;tvl=false&amp;groupBy=monthly\" target=\"_blank\" rel=\"noopener noreferrer\">Defillama<\/a>. The decline reflects both company-specific challenges and wider industry trends.<\/p>\n<figure id=\"attachment_805740\" aria-describedby=\"caption-attachment-805740\" style=\"width:1914px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/static.news.bitcoin.com\/wp-content\/uploads\/2026\/04\/starkware-cuts-jobs-as-starknet-revenue-collapses1_nwmk.png?X-Amz-Content-Sha256=UNSIGNED-PAYLOAD&amp;X-Amz-Algorithm=AWS4-HMAC-SHA256&amp;X-Amz-Credential=AKIARQKIT2TMGZBKV2L6%2F20260413%2Fus-east-1%2Fs3%2Faws4_request&amp;X-Amz-Date=20260413T115105Z&amp;X-Amz-SignedHeaders=host&amp;X-Amz-Expires=600&amp;X-Amz-Signature=59d62e2fbc2d5a60ea67ce4f5334cd477e6c1348333b506c17abac668cf116fd\"><\/a><figcaption id=\"caption-attachment-805740\" class=\"wp-caption-text\">Data from Defillama<\/figcaption><\/figure>\n<p>A key factor has been Ethereum\u2019s EIP-4844 upgrade, introduced in March 2024, which significantly reduced transaction costs on <span>Layer 2<\/span> networks. While the change improved efficiency for users, it also compressed fee revenue across the sector, affecting Starknet and its competitors alike.<\/p>\n<p>Despite the revenue drop, Starknet continues to hold nearly $242 million in total value locked, suggesting that user activity has not disappeared but is generating less income.<\/p>\n<p>Ben-Sasson said the company now needs to convert its technical strengths into meaningful usage and revenue. He indicated a shift toward building proprietary applications, rather than relying solely on infrastructure that depends on external ecosystems.<\/p>\n<h3>Stakeware to Launch New Applications Unit<\/h3>\n<p>As part of the restructuring, Starkware will establish a new applications unit focused on developing high-impact products. The division will be led by researcher Avihu Levy, who was recently promoted.<\/p>\n<p>Levy\u2019s work includes a proposal known as Quantum Safe <a href=\"https:\/\/www.binance.com\/en\/price\/bitcoin\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">Bitcoin<\/a>, which aims to protect <a href=\"http:\/\/bitcoin.com\" target=\"_blank\" rel=\"noopener noreferrer\">bitcoin<\/a> transactions from potential quantum computing threats. The approach relies on hash-based proofs instead of traditional signatures, though it carries higher computational demands and significantly higher transaction costs.<\/p>\n<p>While the company has not confirmed whether this technology will form part of its commercial strategy, Ben-Sasson said future products would focus on areas where Starkware can offer unique capabilities with minimal reliance on external <a href=\"http:\/\/www.bitcoin.com\/get-started\/what-is-a-blockchain\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">blockchains<\/a> or partners.<\/p>\n<p>The restructuring comes at a time when many <a href=\"http:\/\/www.bitcoin.com\/get-started\/what-is-a-blockchain\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">blockchain<\/a> firms are reassessing their business models. A prolonged market downturn and declining transaction fees have exposed the limits of relying solely on infrastructure revenue.<\/p>\n<p>Ben-Sasson, who has worked in the field for over a decade, described the current environment as a period of weak leadership across the industry, adding to the challenges facing companies. Further details on the company\u2019s new direction are expected in the coming weeks.<\/p>\n<p>The shift highlights a broader transition in the <a href=\"http:\/\/www.bitcoin.com\/get-started\/a-quick-introduction-to-crypto\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">crypto<\/a> sector, where firms are increasingly under pressure to move beyond technical innovation and demonstrate clear paths to profitability.<\/p>\n<\/div>\n<p><a href=\"https:\/\/news.bitcoin.com\/starkware-cuts-jobs-as-starknet-revenue-collapses\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : Bitcoin News ) Key Takeaways: Starkware revenue fell from close to $6 million in 2023 to $48 in April 2026, forcing layoffs and restructuring. EIP-4844 cut Starknet fees, compressing income despite $242 million TVL, reshaping L2 economics. CEO, Eli Ben-Sasson plans pivot to apps unit in 2026, aiming to build sustainable [&hellip;]<\/p>\n","protected":false},"author":3947362377,"featured_media":71083,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[32],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/71082"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/3947362377"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=71082"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/71082\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/71083"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=71082"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=71082"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=71082"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}