Wormhole Bids $120M USDC for Stargate, Toppling LayerZero

Published: 2025-08-23 03:22:45 |

Wormhole Foundation has secured financing and proposed an initial all-cash bid of 120 million USDC to acquire Stargate, surpassing LayerZero’s 110 million USDC offer. The deal promises STG token holders maximum certainty and instant liquidity, removing conversion risk and vote delays. Wormhole also requested a pause on the community vote for LayerZero’s STG acquisition. If approved, this acquisition could reshape the cross-chain bridge landscape, signaling significant consolidation in DeFi. Traders should monitor STG liquidity levels and on-chain voting dynamics as key catalysts for potential market movements.

Bullish

Wormhole’s higher 120 million USDC offer outbids LayerZero and signals strong strategic intent in the cross-chain bridge sector. Similar past M&A bids, such as LayerZero’s initial approach, led to STG price spikes as traders anticipated liquidity events and governance outcomes. In the short term, STG trading volumes and price could rally on heightened acquisition speculation and vote developments. Long-term, this consolidation may streamline cross-chain interoperability, attracting further capital to leading bridge protocols and reinforcing market confidence. However, integration risks and community governance hurdles remain. Overall, the aggressive bid and clear liquidity provision are bullish catalysts for STG and related DeFi assets.