The situation with StarkWare is becoming increasingly serious. The company is undergoing a reorganization and layoffs amid Starknet's revenues dropping 99% from its peak. This is not just a cyclical downturn — it’s a sign that the project is facing real problems.

Honestly, many in the ecosystem did not expect such a sharp decline. Starknet was positioned as one of the promising Layer 2 solutions for Ethereum, but it seems expectations did not match reality. When revenues fall by 99%, it means network activity has almost come to a halt.

Job cuts are a logical step for the company in this situation. Expenses need to be optimized, and focus should be on core operations. But it also highlights a broader issue: many blockchain projects that seemed revolutionary have failed to attract and retain users in the long term.

This is a good reminder that in the crypto space, technology is only part of the puzzle. An ecosystem is needed, applications are needed, real use cases are needed. Just a nice white background and a good presentation are not enough when it comes to scaling a blockchain.

It will be interesting to see whether StarkWare can recover or if this is the beginning of the end for Starknet. The market seems to have already delivered its verdict.