Ethereum News Today: LayerZero to Acquire Stargate in $110M Deal ZRO Up 15%

LayerZero Foundation has proposed a $110 million acquisition of the Stargate cross-chain bridge, seeking to consolidate the two projects under its native ZRO token. The transaction will see Stargate’s STG token phased out, with a fixed exchange rate of 1 STG for 0.08634 ZRO [1]. This move aims to streamline cross-chain operations and enhance interoperability within the LayerZero ecosystem. The acquisition is currently being reviewed by the Stargate DAO community, with a seven-day discussion period on the platform’s forum to allow stakeholders to weigh in [1].

The market responded favorably to the announcement, with STG’s price climbing 12% to $0.188 and ZRO rising 15% in the immediate aftermath [1]. Despite STG’s recent decline from its peak of $4.14 to below $0.20, the proposed buyout is seen as a strategic move to stabilize and expand the combined platform’s functionality [1]. However, some community members have raised concerns over the token swap rate, suggesting it may undervalue STG compared to its potential in a merged ecosystem [1].

Bryan Pellegrino, CEO of LayerZero Labs, emphasized that the acquisition is intended to accelerate development and allow Stargate to pursue a more ambitious roadmap [1]. The token swap mechanism marks a departure from traditional acquisition models, offering a transparent and direct transition for holders. By removing STG from active trading and consolidating supply under ZRO, the transaction also aims to stabilize the token’s circulating supply and utility within the broader LayerZero infrastructure [3].

This buyout represents a broader trend in the crypto sector where projects seek to streamline operations through strategic integration. Stargate, launched in 2022, has processed over $70 billion in transactions [1], and its integration with LayerZero is expected to enhance both platforms’ user experience and technological capabilities. The consolidation aligns with industry efforts to prioritize long-term ecosystem growth over short-term speculation [3].

The broader altcoin market has shown signs of renewed interest, with Ethereum recently surpassing $4,000 due to improved scaling solutions and capital inflows [2]. The STG-ZRO buyout is a notable example of how strategic buyouts and integrations are shaping investor sentiment and platform development [4].

As the crypto industry continues to evolve, such buyouts may become more common as projects seek to strengthen their competitive positioning through integration and consolidation. The success of this acquisition will be closely watched by investors and developers, who may see it as a potential blueprint for future token buyouts in the space.

Source:

[1] Development of the Day: One Altcoin Offered to Buy Out Another – Will Remove It from the Market After the Purchase

https://coinmarketcap.com/community/articles/6898fa15d3f2f1289a153162/

[2] Ethereum Breaks Past $4K with Momentum Building

https://www.mitrade.com/insights/news/live-news/article-3-1026463-20250810

[3] Trump's Crypto Pivot, XRP Victory, and Ethereum's $5B

https://medium.com/@dipanshuchaudhry9/trumps-crypto-pivot-xrp-victory-and-ethereum-s-5b-wall-street-buy-the-market-is-heating-up-6ff39317dd6e

[4] 4 Bullish Altcoins Racing to Become the Top Performing ...

https://coincentral.com/4-bullish-altcoins-racing-to-become-the-top-performing-crypto-of-2025/