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

Generated by AI AgentCoin World
Thursday, Aug 21, 2025 5:13 am ET1min read
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Aime RobotAime Summary

- Wormhole Foundation challenges LayerZero's $110M Stargate acquisition bid, driving STG token up 10% to $0.1813.

- Wormhole argues the offer undervalues Stargate's multi-chain potential, seeking competitive bidding to boost final price.

- STG trading volume surged 435% as investors anticipate higher valuations from intensified bidding wars.

- Wormhole's 30+ blockchain network and Mercado Bitcoin partnership highlight its strategic cross-chain innovation focus.

- Market uncertainty remains as Fed's Jackson Hole symposium and 70% STG holder approval threshold influence outcomes.

Stargate’s native token, STG, surged over 10%, reaching an intraday high of $0.1813 from $0.1642, as the Wormhole Foundation announced its intention to challenge LayerZero’s $110 million acquisition offer for the cross-chain liquidity protocol [2]. The move has reignited debates around Stargate’s valuation and long-term potential in the expanding multi-chain blockchain landscape. Wormhole’s challenge could trigger a more competitive bidding environment, potentially driving up the final acquisition price and delivering greater returns to STG holders [1].

The LayerZero proposal, which aims to integrate Stargate’s liquidity layer into its broader interoperability strategy, was initially seen as a strategic move to consolidate its position in the cross-chain messaging and asset transfer space [2]. Stargate’s capabilities align closely with LayerZero’s vision of enabling seamless communication and value movement across different blockchain ecosystems. However, Wormhole argues that the $110 million offer fails to reflect Stargate’s full potential, especially as multi-chain adoption continues to gain momentum [2].

Wormhole, which already connects over 30 blockchains and facilitates billions in cross-chain transactions, has requested a five-business-day pause in the ongoing LayerZero proposal vote to allow time for a more formal and competitive bid [1]. The foundation emphasized that Stargate represents a key player in the evolving multichain sector and that its value extends beyond current cross-chain bridging functions into broader ecosystem development [2]. Wormhole also highlighted its recent partnership with Mercado

Bitcoin
as evidence of its strategic focus on tokenization and cross-chain innovation [2].

The STG token’s sharp rise has been accompanied by a 435% spike in trading volume, reflecting increased market activity and investor optimism [2]. Holders appear to be betting that a competitive bidding war will result in a higher valuation for Stargate, potentially unlocking additional value. However, broader market sentiment, including key macroeconomic events such as the Federal Reserve’s Jackson Hole symposium, will remain critical in determining STG’s near-term performance [2].

Wormhole’s entry into the bidding war has added a new layer of uncertainty to the acquisition process, which requires a 70% approval threshold from STG holders [1]. The delay in the LayerZero vote could provide more clarity on Stargate’s future direction and investor alignment with any potential deal. As both parties prepare their cases, the Stargate community will likely continue to monitor developments closely.

Sources:

[1] title1.............................(https://cryptoslate.com/wormhole-foundation-challenges-layerzeros-110m-stargate-acquisition-proposal/)

[2] title2.............................(https://invezz.com/news/2025/08/21/stg-jumps-10-as-wormhole-challenges-layerzeros-110m-stargate-deal/)