Ethereum Layer 2 Starknet Overcomes Outage After Transaction Halt

TLDR

• Starknet experienced a 4-hour outage on September 2 but resumed block production after addressing technical issues.

• Developers rolled back blocks from September 2 to restore functionality after network disruptions.

• Starknet faces challenges following its Grinta upgrade, which changes its decentralized architecture.

• Ethereum’s Layer 2 network Starknet’s troubles coincide with growing Bitcoin and Ethereum staking developments.

Ethereum’s Layer 2 network, Starknet, went offline briefly on September 2, causing a temporary halt in on-chain transactions. The issue was tied to a network outage that affected block production and transaction processing.

The disruption lasted for several hours, during which builders worked to resolve the issue. Starknet’s developers announced that they were conducting a chain reorganization from block No. 1,960,612, which helped restore functionality. Most RPC providers have since resumed normal operations, and nodes are undergoing upgrades.

The outage was a rare event for Starknet, which has largely maintained strong uptime, aside from a minor disruption in July 2025. The team indicated that a full retrospective analysis, including the root cause and measures for prevention, would be provided in the future.

Starknet’s Grinta Upgrade Linked to Network Instability

The network disruption followed the rollout of Starknet’s Grinta upgrade, which aimed to improve decentralization and update the core architecture. However, the upgrade led to several technical issues, including slow block creation and idle gateways. These issues persisted through the night, with alerts issued for slow block production and gateway inactivity.

The Grinta upgrade significantly altered Starknet’s decentralized sequencer, fee market, and mempool systems. During this period, transactions were temporarily paused to avoid incorrect processing. Developers worked to resolve the disruptions and eventually restored the network.

Despite these challenges, Starknet aims to push forward with its decentralization efforts, including integrating new consensus models that involve Bitcoin staking.

Starknet Faces Growing Staking Interest Amid Network Struggles

In addition to the Grinta upgrade, Starknet is also seeing increased interest in its staking system, particularly with the integration of Bitcoin staking. The network’s proposal to integrate Bitcoin staking, under SNIP-31, was approved by the community with a 93.6% vote. This decision will allow wrapped Bitcoin assets like WBTC, LBTC, and tBTC to participate in the network’s staking process, contributing to the overall security and decentralization of Starknet.

The staking model will assign a 25% weighting to Bitcoin in the consensus mechanism, with Starknet’s native token, STRK, holding the remaining 75%. This move is seen as a crucial step in the network’s long-term development, even as it faces challenges related to Grinta’s deployment.

Starknet’s difficulties coincide with a broader trend of rising institutional interest in Ethereum and its Layer 2 solutions. Despite these setbacks, Starknet continues to focus on scalability and decentralized governance.

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