XRP News Today: LayerZero to Buyout Stargate in $110M Token Swap Deal

LayerZero Foundation, the organization behind the cross-chain interoperability protocol LayerZero (ZRO), has announced a $110 million offer to acquire the Stargate bridge and its native token, STG. The proposal aims to integrate Stargate into the LayerZero ecosystem as a key participant, with the ultimate goal of enhancing cross-chain infrastructure and expanding the functionality of both projects [1].

Under the terms of the proposal, the STG token will be phased out, and holders will be able to exchange their STG holdings for ZRO at a fixed rate of 1 STG = 0.08634 ZRO, which translates to $0.1675 per STG and $1.94 per ZRO. The exchange rate was established to reflect the relative values of both tokens and to ensure a smooth transition for token holders. Following the announcement, the price of STG increased by 12% to $0.188, while ZRO rose 15%, pushing the total value of the transaction to approximately $127 million [1].

Stargate, launched in 2022, has become one of the most widely used blockchain bridges, with over $70 billion in transaction volume. However, the value of STG has significantly declined since its launch, dropping from a peak of $4.14 to below $0.20. The buyout proposal represents a strategic move to consolidate resources and streamline operations, allowing the team to focus on long-term development and deeper integration with the LayerZero ecosystem [1].

According to Bryan Pellegrino, co-founder and CEO of LayerZero, the acquisition is intended to accelerate the development of both projects and enable Stargate to pursue an expanded roadmap beyond bridging. The proposal is currently open for discussion on the Stargate DAO community forum for seven days, during which community members can express their views. Some have raised concerns that the offer does not provide sufficient value for STG holders, highlighting the challenges of aligning community expectations with strategic business decisions [1].

The move comes at a time of increased volatility and activity in the altcoin market, with growing investor interest driven by broader market sentiment and technological advancements. Ethereum, for instance, has recently surged above the $4,000 threshold, with analysts attributing the rise to improved scaling solutions and shifting capital flows from Bitcoin to altcoins [2]. The STG-ZRO swap exemplifies a trend in which projects are prioritizing token utility, ecosystem integration, and long-term sustainability over short-term price speculation [3].

This kind of buyout is relatively rare among altcoins, yet it underscores a broader shift in how blockchain projects are evolving. Unlike traditional mergers and acquisitions, the removal of STG from the market will occur via a token swap mechanism, offering a transparent and direct transition to ZRO. This process also removes STG from active trading, potentially stabilizing the supply and strengthening the market position of ZRO.

The STG-ZRO proposal also reflects a growing trend in the industry toward strategic consolidation. By absorbing Stargate into its ecosystem, LayerZero aims to offer a more cohesive and scalable cross-chain infrastructure. This could encourage similar buyout strategies in the future, especially as altcoin developers seek to streamline operations and improve user experiences [4].

The broader market remains optimistic about altcoin performance, with several projects showing strong growth potential. These include initiatives with innovative presale models and airdrop strategies, such as BlockDAG and Cardano. Meanwhile, XRP has maintained a strong position relative to Ethereum, though the gap between the two tokens has narrowed as both see increased adoption and market traction [5].

As the crypto landscape matures, such strategic buyouts could become more common, offering a path to greater efficiency and innovation. Investors and developers alike will be closely watching the execution of the STG-ZRO transition to gauge its success and potential as a model 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/

[5] Should You Forget XRP and Buy This Soaring Cryptocurrency ...

https://finance.yahoo.com/news/forget-xrp-buy-soaring-cryptocurrency-083300659.html