Wormhole Challenges LayerZero in Stargate Acquisition Bid Amid $345M TVL Debate

Generated by AI AgentCoin World
Wednesday, Aug 20, 2025 3:46 pm ET1min read
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Aime RobotAime Summary

- Wormhole Foundation challenges LayerZero's $110M bid for Stargate, citing undervaluation of its $345M TVL and growing cross-chain assets.

- Stargate's reported $97.6M in stablecoins and $5.24M in other holdings, plus $4B July 2025 bridge volume, justify higher valuation claims.

- The acquisition race highlights DeFi valuation tensions, with potential to reshape cross-chain infrastructure through merged liquidity and ecosystem expansion.

- Wormhole demands a 5-day voting pause to prepare competitive offers, emphasizing Stargate's 80+ blockchain integrations and $2M annual revenue potential.

Wormhole Foundation has escalated its involvement in the acquisition race for Stargate, a cross-chain protocol with a $345 million total value locked (TVL), after criticism of LayerZero’s initial $110 million ZRO token offer. LayerZero’s proposal, which includes future revenue from the protocol, has been widely perceived as undervaluing Stargate’s growing assets and market potential. Stargate’s reported treasury includes $76.47 million in stablecoins, $15.9 million in

Ethereum
, and $55 million in Stargate tokens, along with $5.24 million in other holdings[1].

Wormhole Foundation has called for a five-day pause in the ongoing Snapshot vote to prepare a more competitive bid. The foundation argues that Stargate’s fundamentals, including a tenfold increase in bridge volume to $4 billion in July 2025 compared to the same period in the previous year, justify a higher valuation. Stargate is also integrated across more than 80 blockchain networks, further solidifying its role in cross-chain interoperability[1].

The proposed acquisition has sparked debate within the DeFi community, with many viewing it as a pivotal moment in the evolution of cross-chain infrastructure. Wormhole emphasized that merging Stargate’s liquidity and user base with its own extensive ecosystem could lead to significant growth in bridge volume and fee revenue. The foundation believes the combination would create long-term value for stakeholders and set a new standard for cross-chain collaboration[1].

The outcome of this competition could reshape the competitive landscape of cross-chain technologies, potentially influencing future integration strategies and acquisition models in the DeFi space. With Stargate’s annual revenue estimated at around $2 million and its continued expansion across blockchain networks, the stakes in this contest are particularly high[1].

The acquisition battle highlights broader tensions within the DeFi sector, where valuation models for protocols remain fluid and often contested. As Stargate holders weigh their options, the transparency and fairness of the bidding process will be key to maintaining trust and ensuring a sustainable path forward for all parties involved[1].

Source: [1] Wormhole vs LayerZero – Who Will Win the Fight for Stargate’s $345M Network? (https://coindoo.com/wormhole-vs-layerzero-who-will-win-the-fight-for-stargates-345m-network/)

[2] Wormhole Foundation Moves to Outbid LayerZero for Stargate (https://blockonomi.com/wormhole-foundation-moves-to-outbid-layerzero-for-stargate/)

[3] Cryptocurrency news, analysis, price predictions (https://coindoo.com/)