Wormhole Raises Stargate Bid to $120M in Cross-Chain Showdown

The Wormhole Foundation has increased its acquisition offer for Stargate Finance to $120 million in USDC, surpassing the initial $110 million proposal from LayerZero [1]. This move marks a significant escalation in the ongoing competition between two leading cross-chain infrastructure platforms to acquire Stargate, a prominent protocol with a total value locked (TVL) of $345 million and $4 billion in monthly bridge volume [3]. The cash-based offer, submitted on July 19, 2025, emphasizes immediate liquidity for STG token holders, contrasting with LayerZero’s token-swap model [2].

This acquisition battle is not merely a financial contest but a philosophical and strategic one over the future of cross-chain infrastructure. Wormhole promotes a decentralized governance model, while critics argue that LayerZero’s approach is more centralized and potentially undervalues Stargate’s assets [6]. By integrating Stargate’s liquidity pools with its extensive network of over 40 blockchain integrations—including Ripple, Sui, and Celo—Wormhole aims to position itself as a unified cross-chain hub [3].

The increased bid has already triggered market reactions, with STG token prices rising more than 10% amid the heightened speculation [3]. Analysts suggest that a successful acquisition could unlock growth potential for both the W and STG tokens. If finalized, Wormhole’s native token W could see a 90–150% increase, according to analyst forecasts [3]. Stargate’s STG token currently trades at $0.17, having previously peaked at $0.18, while W is priced at $0.081 with a $400 million market cap [3].

The broader implications of this acquisition go beyond token valuations. The DeFi landscape has seen a surge in mergers and acquisitions as protocols aim to consolidate liquidity and improve interoperability [3]. Wormhole’s $120 million offer aligns with this trend, emphasizing institutional-grade infrastructure and decentralized governance. This strategy could attract a wider user base compared to LayerZero’s centralized approach, which has been criticized for potentially compromising Stargate’s trustless nature [6].

Regulatory developments in 2025, including the U.S. SEC’s revised guidance on token offerings and the EU’s updated regulatory framework, have created a more favorable environment for cross-chain projects [3]. These changes may support token valuations, especially for protocols with strong compliance measures.

The final decision will rest with Stargate’s governance vote, scheduled for August 18, 2025 [3]. Investors are advised to monitor the outcome closely, as a favorable result for Wormhole could justify increased exposure to its ecosystem. The cross-chain DeFi space is at an inflection point, and the winner of this acquisition race may shape the future of blockchain infrastructure and financial innovation [3].

The acquisition bid also underscores the strategic importance of liquidity and governance in the DeFi ecosystem. Stargate’s role as a bridge between multiple blockchains makes it a critical asset in the multichain vision [3]. Securing Stargate could position Wormhole as a leading player in the next phase of decentralized finance, where interoperability and trustless systems are central.

Source:

[1] title: Wormhole to acquire Stargate for at least 120 million USDC (url: https://www.panewslab.com/en/articles/c1dcb8a2-7159-48e2-bb0c-beabfc14a96b)

[2] title: Wormhole formally proposed to acquire Stargate for at least 120 million USDC (url: https://www.odaily.news/en/newsflash/444704)

[3] title: Wormhole Foundation Counters LayerZero Bid with $120M ... (url: https://coincu.com/news/wormhole-120m-stargate-bid/)

[6] title: Wormhole's Potential Bid for Stargate and Its Implications ... (url: https://www.ainvest.com/news/wormhole-potential-bid-stargate-implications-cross-chain-defi-dynamics-2508/)