Stargate is drawing intensified acquisition interest, with Wormhole stepping in to challenge LayerZero’s initial $110 million token-swap proposal. In a bold move, Wormhole has committed to presenting a higher offer, emphasizing a more advantageous deal for Stargate (STG) tokenholders.

Wormhole, aiming to enhance its presence in the cross-chain ecosystem, has requested the Starkgate community to postpone the current vote. The intent is to allow sufficient time for stakeholders to review their competing proposal and conduct thorough due diligence.

Why Stargate Is an Attractive Acquisition Target

Stargate’s attractiveness stems from its impressive financial and operational metrics. In July alone, its bridging service facilitated over $4 billion in transactions. Furthermore, it maintains a total value locked (TVL) of $345 million, with an additional $92 million in reserve assets comprising stablecoins and ether. The platform’s treasury also holds $55 million in STG tokens and other cryptocurrencies, generating annual revenue of around $2 million.

This robust financial positioning has Beckoned bidders like Wormhole, which believes the LayerZero offer does not reflect Stargate’s full value potential. According to Wormhole’s statement, “Based on our initial review, we believe that STG holders deserve a more competitive process, and we are prepared to submit a meaningfully higher bid.”

A Critique of the LayerZero Offer

LayerZero’s proposal would reportedly transfer Stargate’s treasury and its future income, a move some stakeholders claim undervalues the entire platform. Wormhole argues that these terms compromise tokenholder interests and undervalue the Stargate protocol and its assets.

“STG holders deserve better,” Wormhole stated in its proposal. The foundation is pushing for greater fairness and transparency in the acquisition proceedings, making the case for an open and competitive bidding process.

Strategic Synergy Between Wormhole and Stargate

A merger with Wormhole could significantly enhance cross-chain capabilities in the crypto world. Stargate is known for its unified liquidity pools, while Wormhole connects dozens of blockchain networks. Bringing these two capabilities together could form one of the most comprehensive cross-chain infrastructure providers in the industry.

“The Wormhole Foundation sees unrealized value in the Stargate brand, protocol, and protocol assets,” the proposal added. They claim such a merger would unlock both immediate and long-term benefits for STG holders, as well as users and stakeholders in the broader Wormhole ecosystem.

Stargate processed over $4 billion in transactions in July, showcasing its growing cross-chain relevance.

Delaying the Vote and Next Steps

Wormhole is pushing for a five-day delay in the tokenholder vote to give its team adequate time to finalize the competitive offer and complete its due diligence. By doing so, they aim to ensure that STG holders are fully informed before making a decision that could significantly impact ownership and governance of the Stargate protocol.

If successful, the Wormhole–Stargate integration would bolster both ecosystems by expanding liquidity, network integrations, and adoption across blockchains. The industry now watches closely as the Stargate community evaluates both offers and determines the future of one of DeFi’s leading bridge services.

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Read more: LayerZero Proposes $110M Stargate Token Merger in Consolidation Play