Stargate’s native token (STG) surged more than 10% on August 20 after the Wormhole Foundation announced plans to enter a bidding war for the cross-chain protocol.
Price Reaction and Market Context
STG rose from lows of $0.1633 to $0.182, bouncing back from a broader crypto downturn on August 19 that had pushed many altcoins to support levels. The rebound came alongside Bitcoin’s attempt to reclaim $114,000 and Ethereum’s recovery above $4,300.
But the double-digit rally for Stargate wasn’t just a market-driven bounce it was fueled by a fresh twist in its acquisition saga.
Wormhole Challenges LayerZero’s Offer
Stargate is currently the subject of a $110 million acquisition bid from LayerZero, which outlined its proposal on August 11. Terms include:
- All circulating STG swapped for ZRO tokens
- Stargate’s operations moving under the LayerZero Foundation
- A revenue-sharing arrangement
A community snapshot vote on the proposal began last week and is scheduled to close on August 24.
However, the Wormhole Foundation — which oversees the Wormhole ecosystem — has stepped in, urging Stargate to pause the snapshot vote and consider a competitive bidding process instead.
Why Wormhole Thinks Stargate Is Undervalued
According to Wormhole, LayerZero’s $110M offer “grossly undervalues” Stargate’s assets and long-term potential.
- Stargate’s treasury alone is worth ~$92M, excluding its STG tokens.
- The bid effectively hands over assets, brand, codebase, and future economic upside for only slightly more than treasury value.
“The current bid undervalues the protocol’s assets, brand, codebase, and team. We’re prepared to submit a meaningfully higher offer, and we believe a competitive process will drive even more value for everyone involved,” Wormhole wrote in its statement.
Stargate’s Growth Story
Despite its token price struggles — down sharply from its $4.28 all-time high in April 2022 — the Stargate protocol itself has expanded significantly:
- Bridge volume has grown 10x since July 2024
- Total value locked (TVL) has climbed to $345M
- The protocol is now live across 80+ chains
This growth, Wormhole argues, underscores why STG holders deserve a deal that reflects Stargate’s true worth.
What’s Next?
If the community heeds Wormhole’s call, Stargate could enter a full bidding war between LayerZero and Wormhole potentially driving up value for token holders.
For now, all eyes are on the August 24 snapshot deadline, which will determine whether LayerZero’s proposal moves forward or if the door is opened for Wormhole’s counteroffer.
