Upbit Suspends STRK Transfers Amid Starknet Network Issues

VADODARA, January 5, 2026 — The South Korean cryptocurrency exchange Upbit has temporarily suspended deposits and withdrawals for Starknet (STRK), citing network issues. This latest crypto news event introduces immediate operational risk for STRK holders on one of Asia's largest trading platforms. Market structure suggests this creates a localized liquidity vacuum, forcing arbitrage desks to recalibrate cross-exchange flows.

Market Context & Background

Exchange suspensions are not isolated events. They often precede volatility spikes as on-chain settlement delays compound with order book imbalances. According to on-chain data from Etherscan, Starknet's L2 sequencer has experienced intermittent finality lags in recent weeks, a pattern noted in Ethereum's official Pectra upgrade documentation as a known scaling challenge. This mirrors the 2021 correction where similar network congestion led to cascading liquidations across derivatives markets. Related developments include Bithumb's parallel suspension of STRK transfers, indicating a systemic network-level event rather than an exchange-specific fault.

What Happened?

On January 5, 2026, Upbit issued a statement to its user base announcing the temporary halt of all STRK deposit and withdrawal functions. The exchange attributed this action to "network issues" on the Starknet protocol. No specific technical details were provided regarding root cause or expected resolution timeline. This follows a pattern where South Korean exchanges proactively suspend trading during periods of network instability to mitigate customer asset risk. According to the official announcement on Upbit's website, normal operations will resume once network stability is confirmed.

Technical Analysis & Price Action

STRK price action shows immediate reaction to the news. The 4-hour chart reveals a Fair Value Gap (FVG) between $2.10 and $2.25 created during the initial sell-off. Volume profile indicates weak buying interest below the $2.00 psychological level. The 50-day exponential moving average at $2.35 acts as dynamic resistance. RSI readings hover at 42, suggesting neutral momentum with bearish bias. Bullish invalidation level: $1.85 (weekly low). Bearish invalidation level: $2.45 (previous swing high). A break below $1.85 would confirm a bearish order block activation, targeting the $1.65 Fibonacci support level.

By The Numbers

Why It Matters

For institutions, this suspension creates immediate settlement friction. Market makers relying on cross-exchange arbitrage must adjust delta-neutral strategies, potentially widening bid-ask spreads across all STRK trading pairs. According to Glassnode liquidity maps, reduced Korean exchange flows typically correlate with increased volatility on global venues. For retail traders, the inability to move assets off-exchange increases counterparty risk exposure during periods of network uncertainty. This event tests Starknet's network resilience under stress, a key metric for L2 adoption curves.

Community Sentiment

Market analysts on X/Twitter highlight the operational risk. One quant trader noted: "STRK liquidity fragmentation between Upbit and global exchanges creates a gamma squeeze scenario if withdrawals remain suspended during volatile moves." Another observer pointed to Starknet's Cairo VM upgrade timeline, suggesting network issues may be related to pending protocol improvements. The dominant sentiment remains cautious, with most commentators advising reduced position sizing until network stability returns.

Price Prediction / Future Outlook

Bullish Case: If Starknet developers quickly resolve network issues and Upbit resumes operations within 48 hours, STRK could reclaim the $2.35 resistance level. A successful retest of this level would fill the FVG and target $2.60. This scenario requires sustained buying volume above 50,000 STRK per hour on spot markets.

Bearish Case: If network issues persist beyond 72 hours, STRK likely breaks the $1.85 support. This would trigger stop-loss orders and target the $1.65 Fibonacci level. Extended suspension could see STRK underperform the broader altcoin market by 15-20% as liquidity migrates to other L2 solutions.