Stargate Price Surges Over 10% as Wormhole Challenges LayerZero's $110M Bid

The price of Stargate (STG) surged more than 10% on August 20, climbing from lows of $0.1633 to $0.182 across major crypto exchanges. This upward movement followed an announcement by the Wormhole Foundation that it was considering a bid to acquire the cross-chain protocol, challenging an earlier $110 million offer from LayerZero. The development has reinvigorated investor interest in Stargate, which had previously been impacted by the broader cryptocurrency market downturn [1].

The LayerZero proposal involves exchanging all circulating STG tokens for ZRO, establishing a revenue-sharing model, and transferring Stargate operations to the LayerZero Foundation. However, the Wormhole Foundation has argued that the offer significantly undervalues Stargate, pointing out that the protocol’s treasury alone—excluding STG tokens—stands at approximately $92 million. The foundation has urged a pause in the ongoing snapshot vote, which is set to conclude on August 24, to facilitate a competitive bidding process that better reflects Stargate’s potential and growth [1].

Wormhole Foundation emphasized that LayerZero’s bid of approximately $110 million in ZRO—equivalent to around $76.47 million in stablecoins and $15.9 million in ETH—fails to account for the long-term value of Stargate’s assets, brand, codebase, and team. It has pledged to submit a significantly higher offer and expressed confidence that a competitive process would yield greater value for all parties involved [1].

Stargate has experienced notable growth in recent months, with cross-chain bridge volume increasing tenfold since July 2024. The protocol’s total value locked has reached $345 million, and it now operates across more than 80 blockchain networks. These developments have reinforced its position as a key player in multichain asset transfers [1].

Despite the recent price rebound, STG remains far from its peak of $4.28 in April 2022. The outcome of the acquisition process could be a turning point for the protocol, with the potential to influence not only Stargate’s future but also broader sentiment in the cross-chain space. If the Wormhole Foundation’s bid is successful, it could reshape the competitive landscape, bringing new dynamics to both projects and their ecosystems [1].

Source: [1] Stargate Price Surges as Wormhole Floats Acquisition Bid

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