# Starknet Rallies as Parent Firm StarkWare Warns of Advancing Quantum Security Threats

- URL: https://stocks.freetheai.org/news/starknet-rallies-as-parent-firm-starkware-warns-of-advancing-quantum-security-d6c082
- Published: 2026-10-11T11:19:47Z
- Category: crypto; sentiment: bullish; impact: high
- Symbols: [COINBASE:STRKUSD](https://stocks.freetheai.org/symbols/COINBASE-STRKUSD)
- Written by our AI from expert market sources across the web for FreeTheAI Stocks, built by Vibhek Soni
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Starknet (STRK) experienced a sharp price rally after StarkWare, the firm behind the network, warned that advancing artificial intelligence is accelerating the timeline for quantum computing threats to blockchain security. StarkWare co-founder and Chief Executive Officer Eli Ben-Sasson stated that AI improvements in error correction and algorithm design could allow quantum systems to break standard cryptographic signatures sooner than previously expected.

To protect user funds, StarkWare is considering separating Starknet from Ethereum to deploy quantum-resistant encryption without waiting for broader network changes. While Ethereum targets complete quantum protection by late 2029, Starknet could reach that milestone by next year as an independent layer. StarkWare also recently executed a trial transaction using hash-based cryptography processed by mining pool MARA Holdings Inc. (MARA) to show the feasibility of quantum-safe transfers.

Investors will be monitoring whether StarkWare proceeds with separating Starknet from Ethereum to expedite its security roadmap. The market will also track ongoing developments in quantum-resistant protocol upgrades and transaction costs across major digital asset networks.

## Key points

- Starknet token prices surged following warnings from StarkWare that AI is speeding up potential quantum computing threats to blockchain encryption.
- StarkWare is evaluating separating Starknet from Ethereum to deploy quantum-resistant security features by next year instead of waiting until 2029.
- The firm demonstrated a quantum-safe Bitcoin transaction processed through mining pool MARA Holdings Inc. (MARA).
- Starknet traded up 8.61 percent on the day at 0.1122 USD, continuing a multi-day upward price move.

## Questions and answers

### Why is Starknet token rising?

Starknet token surged after StarkWare warned that AI is accelerating quantum security threats, leading the firm to consider separating from Ethereum to implement faster quantum-resistant upgrades.

### How does quantum computing threaten cryptocurrency?

Quantum computers could eventually break standard cryptographic algorithms, such as ECDSA, which secure signatures and user balances on major blockchain networks like Bitcoin and Ethereum.

### How soon could Starknet become quantum resistant?

StarkWare stated that Starknet could achieve full quantum resistance by next year if it operates independently, compared to Ethereum's target timeline of late 2029.