Stargate Finance (STG) Price Prediction

Deep Dive

1. Acquisition Battle (Mixed Impact)

Overview: LayerZero’s $110M bid to acquire Stargate (1 STG = 0.08634 ZRO) faces a rival offer from Wormhole, which claims it will submit a “meaningfully higher bid” (Cointelegraph). The original proposal drew criticism for undervaluing STG’s $345M TVL and $4B July bridging volume.

What this means: A bidding war could drive short-term price volatility, as seen in STG’s 6% surge to $0.18 on Wormhole’s announcement. However, a finalized buyout might lock in gains via token swaps while eliminating STG’s standalone utility.

2. Cross-Chain Adoption (Bullish Impact)

Overview: Stargate processed $70B+ lifetime volume, with July 2025 bridging up 10x YoY to $4B. Recent expansions include EURC stablecoin support and Base chain integration, positioning it as Ethereum’s #1 liquidity rail (MEXC News).

What this means: Rising usage directly correlates with protocol fees – Stargate generated $939K for stakers in Q2 2025. Sustained growth in real-world asset (RWA) bridges and new chains like Solana could increase buy pressure for STG if the token remains active.

3. Token Sunset Risk (Bearish Impact)

Overview: LayerZero’s proposal would retire STG, redirecting 50% of protocol revenue to ZRO buybacks. STG holders lose staking yields and governance rights in this model, creating sell incentives pre-redemption (Yahoo Finance).

What this means: Historical precedents like Anyswap’s MULTI merger saw 40-60% token dumps post-announcement. If approved, STG’s value becomes tethered to ZRO’s performance ($2.33 at proposal), which itself has fallen 67% from its 2024 peak.

Conclusion

STG’s near-term trajectory depends on acquisition terms – favorable bids or community rejection could spark rallies, while merger approval risks dilution. Long-term, its role in cross-chain liquidity remains strong, but tokenholders face existential uncertainty.

Will Stargate’s DAO prioritize short-term buyout premiums or long-term protocol independence? Watch the Snapshot vote turnout and competing bids through September 2025.