LayerZero Proposes Acquisition of Stargate Worth Over $127 Million, Shocking the Crypto Market.
On August 10th, LayerZero Foundation - the organization behind the cross-chain interoperability protocol LayerZero - unexpectedly announced a proposal to acquire the entire Stargate blockchain bridge project and its STG token, with an initial value of around $110 million. However, immediately after the announcement, the prices of ZRO and STG tokens simultaneously surged, pushing the total transaction value to over $127 million.
According to the proposal, the STG token will be permanently discontinued. STG token holders can exchange their tokens for ZRO - LayerZero's native token - at a ratio of 1 STG = 0.08634 ZRO, equivalent to $0.1675/STG and $1.94/ZRO at the time of announcement. The entire Stargate will be merged into LayerZero Foundation, and Stargate's DAO will be dissolved.
LayerZero Labs' CEO and co-founder, Bryan Pellegrino, shared on X:
"We want to accelerate. LayerZero will help Stargate implement an ambitious roadmap while creating a unified platform where any partner in the LayerZero ecosystem can deploy."
Stargate was originally launched by LayerZero in 2022, making waves when the STG token reached a peak of $4.14 immediately after listing. Throughout this period, Stargate has been considered the most popular blockchain bridge in the market with over $70 billion in cumulative trading volume. However, the STG price had fallen below $0.20 before the acquisition information was announced.
Immediately after the proposal, the STG price jumped over 12% to $0.188, while ZRO also increased by about 15%. This caused the actual transaction value to increase by nearly $17 million from the initial amount.
However, this proposal is causing debate in the community. Some of Stargate's DAO members believe that the price LayerZero proposed is too low compared to the project's potential and current revenue. User "Vladtheinhaler" commented:
"STG once reached $4 in previous cycles. With its current potential and revenue, this proposal should be significantly higher."
Mr. Pellegrino affirmed that the price at the time of the proposal is considered "fair," and all DAO members will decide through voting. Notably, all internal LayerZero members who own STG will not participate in the voting to ensure transparency.
Broader Context: M&A Wave in Crypto During Trump's Presidential Term
The LayerZero-Stargate transaction occurs in a context where the crypto market has been witnessing a strong wave of mergers and acquisitions since the beginning of 2025. Since Donald Trump returned to the White House in late 2024, the new US digital currency policy is considered more open, especially in promoting blockchain interoperability and encouraging Web3 solutions.
Experts note that if LayerZero successfully merges with Stargate, this will be a significant turning point helping them control cross-chain liquidity supply chains and increase competitiveness against "giants" like Wormhole or Synapse. Meanwhile, token consolidation could help LayerZero reduce token inflation pressure and concentrate value at a single point.
The market is now waiting for the official voting results in the next 7 days. If approved, this will be one of the most notable M&A transactions in the blockchain industry in 2025, potentially deeply influencing future chain connection strategies.
