StarkWare pivots after Starknet revenue collapse

StarkWare restructures and cuts staff after Starknet revenue plunged 99%. The company will split into two units, focusing on in-house, revenue-generating products.

StarkWare is undergoing a significant restructuring after a sharp decline in revenue from its Starknet blockchain. Monthly income dropped from nearly $6 million in late 2023 to about $48,000 by April 2026. This decrease is largely due to Ethereum’s EIP-4844 upgrade, which lowered fees for layer 2 solutions and impacted Starknet’s earnings. Despite the revenue drop, Starknet’s total value locked remains above $200 million. In response, StarkWare is reducing its workforce and reorganizing into two independent business units: one focused on revenue-generating applications and another on Starknet development. The company is shifting from providing infrastructure-only services to developing proprietary products. Avihu Levy will lead the new applications division, with projects like Quantum Safe Bitcoin. CEO Eli Ben-Sasson highlighted the need to leverage StarkWare’s technology for tangible revenue and broader adoption, signaling a major strategic pivot.