Wormhole Challenges LayerZero with Higher Bid for Stargate in Cross-Chain Bridge Battle

Wormhole has entered the acquisition fray for bridging service Stargate with a bid surpassing LayerZero's $110 million token-swap offer, demanding a delayed Snapshot vote to allow community consideration. The MOVE signals intensifying competition for dominance in cross-chain infrastructure as DeFi activity rebounds.

Stargate's fundamentals justify the bidding war: $4 billion in July bridge volume, $345 million total value locked, and a treasury holding $147 million in liquid assets. Yet its $2 million annual revenue suggests acquirers are betting on strategic synergies rather than immediate returns.

LayerZero's proposal—transferring both treasury and future revenue streams—faces criticism for undervaluing STG tokenholders. Wormhole contends its "meaningfully higher bid" better reflects Stargate's network effects when combined with its own multichain integrations across 30+ networks.

A successful Wormhole-Stargate merger WOULD create crypto's largest cross-chain liquidity hub, leveraging Stargate's unified pools with Wormhole's expansive connectivity. The foundation touts "unrealized value" in Stargate's brand and protocol assets that could boost volume resilience for both ecosystems.