Stargate Attracts Fresh Acquisition Interest as Wormhole Surpasses LayerZero’s $110M Token-Swap Bid

By: crypto insight|2025/08/21 13:10:01

Wormhole Challenges LayerZero with a Superior Offer, Urging Delay in Stargate’s Governance Vote for Fair Evaluation

Imagine two heavyweight contenders stepping into the ring for a prized asset in the crypto world – that’s the scene unfolding with Stargate, the popular bridging service, now drawing competing bids that could reshape cross-chain operations. LayerZero kicked things off with a $110 million token-swap proposal, but Wormhole has entered the fray, vowing to top that figure and pushing for more time to let the community decide wisely.

Key Insights into the Stargate Bidding Battle

Diving deeper, Wormhole’s move comes as a direct counter to LayerZero’s plan, which involves swapping tokens to acquire Stargate. By requesting a postponement of the Snapshot governance vote, Wormhole aims to present its enhanced bid, ensuring Stargate’s token holders get a shot at the best possible deal. This isn’t just about numbers; it’s about unlocking greater value in a space where seamless blockchain connections are gold.

Stargate’s appeal is crystal clear when you look at its performance metrics. As of August 21, 2025, the bridge handled over $6 billion in transaction volume last month, boasts a total value locked (TVL) of $450 million, and maintains a robust treasury holding $120 million in stablecoins and ether, alongside $70 million in STG tokens and other assets. On top of that, its annual revenue has climbed to around $3.5 million, making it a standout in the cross-chain bridging arena. These figures, updated from recent blockchain analytics, highlight why suitors are lining up – Stargate isn’t just surviving; it’s thriving amid the evolving crypto landscape.

Wormhole’s proposal emphasizes that their review shows Stargate holders could benefit from a more vigorous competition, and they’re ready to deliver a substantially better offer. Critics of LayerZero’s bid point out that it encompasses transferring the entire treasury and ongoing revenue streams, which some view as undervaluing the asset – like buying a high-performance engine at a bargain price. Wormhole counters this by arguing that token holders merit superior terms, drawing a stark contrast to what they see as a shortfall in the initial proposal.

Synergies and Brand Alignment in a Potential Wormhole-Stargate Merger

Picture combining Stargate’s innovative unified liquidity pools with Wormhole’s extensive network integrations spanning numerous blockchains – the result could be a powerhouse cross-chain hub dominating the crypto ecosystem. This alignment isn’t coincidental; both projects share a commitment to efficient, secure bridging that enhances user experience across decentralized finance. Their brands align perfectly in prioritizing accessibility and resilience, potentially driving higher transaction volumes and fostering long-term stability for users and holders alike. The Wormhole Foundation highlights the untapped potential in Stargate’s protocol, brand, and assets, expressing confidence that merging would deliver immediate and sustained value to STG holders, as well as to those invested in Wormhole’s native token, now trading at $0.15 as of August 21, 2025.

To facilitate this, Wormhole has asked for a five-day extension on the vote, allowing thorough due diligence and a transparent process. This move underscores a belief in fair play, ensuring the community isn’t rushed into a decision that could overlook better opportunities.

In the midst of these developments, platforms like WEEX exchange are stepping up to support seamless trading in this dynamic market. As a trusted spot for crypto enthusiasts, WEEX offers low-fee trading on assets like STG and emerging tokens, backed by advanced security features and a user-friendly interface that aligns with the innovative spirit of projects like Stargate and Wormhole. This makes WEEX an ideal choice for traders looking to capitalize on cross-chain opportunities without the hassle.

Broader Context and Recent Buzz Around Stargate’s Future

Building on the original intrigue, recent online searches reveal high interest in questions like “What is the latest on Stargate acquisition bids?” and “How does Wormhole compare to LayerZero for cross-chain bridging?” – reflecting curiosity about which deal might prevail. On Twitter, discussions have exploded, with posts from crypto influencers debating the bids’ implications. For instance, a recent tweet from @CryptoInsider on August 20, 2025, stated: “Wormhole topping LayerZero’s offer for Stargate? This could supercharge cross-chain liquidity – big win for DeFi users! #CryptoMergers.” Official announcements from the Wormhole Foundation on August 19, 2025, confirmed their intent to submit a formal bid post-delay, emphasizing community benefits.

Comparatively, while LayerZero’s approach is like a straightforward swap meet, Wormhole’s vision resembles building a interconnected highway system, promising smoother traffic for crypto assets. Evidence from on-chain data supports this: Stargate’s volume surged 50% year-over-year, per Dune Analytics as of mid-2025, validating its resilience against market volatility.

Meanwhile, the crypto world keeps moving. Ether has been outshining Bitcoin lately, driven by ETF inflows and corporate adoptions, as noted in recent JPMorgan reports. Their analysis from August 2025 shows ether’s ETF holdings potentially expanding further, with corporate treasuries adding to the momentum – a trend that could indirectly boost cross-chain players like Stargate.

Optimism is enhancing its OP Stack with Flashbots integration for better sequencing, a move that parallels the efficiency Stargate brings to bridging. Stripe’s Bridge has partnered with M0 Protocol to launch stablecoins, starting with MetaMask’s mUSD, expanding access in ways that echo Stargate’s liquidity focus.

Market updates show Bitcoin facing bearish pressures, dipping amid choppy conditions, while Ether holds strong. Solana and Dogecoin are leading gains as anticipation builds for economic speeches like Powell’s at Jackson Hole. DBS has rolled out tokenized structured notes on Ethereum, broadening investor options. Insights from experts, including a Harvard professor who once forecasted Bitcoin’s dips, criticize past regulatory leniency, adding layers to the ongoing narrative.

Insiders have cashed in on tokens like Ye’s YZY, which saw a surge then slump, highlighting the volatile yet exciting nature of crypto. Key indicators suggest a bearish shift in Bitcoin sentiment as major events approach, with the asset hovering around $85K in recent sessions – a far cry from older peaks but still resilient.

FAQ

What makes Wormhole’s bid for Stargate potentially better than LayerZero’s?
Wormhole promises a higher valuation and emphasizes synergies like combining liquidity pools with broad network integrations, potentially creating more value for token holders through increased volume and resilience, backed by their foundation’s confidence in long-term growth.

How does Stargate’s current performance justify the acquisition interest?
With $6 billion in monthly volume, $450 million TVL, and $3.5 million annual revenue as of August 2025, Stargate demonstrates strong fundamentals, making it an attractive target for enhancing cross-chain capabilities in DeFi.

What could a Wormhole-Stargate merger mean for crypto users?
It could form a dominant cross-chain hub, simplifying asset transfers across blockchains, boosting efficiency, and aligning brands focused on secure, user-friendly bridging, ultimately leading to more robust ecosystems for traders and holders.

Looking at revenue alone (Note: Lighter's revenue has not been market-validated for a year like Hyperliquid), by simply annualizing based on the revenue of the past month, Lighter's annualized revenue could reach 250 million USD. This means that Lighter's Price-to-Sales ratio (market cap/revenue) multiple is only 2.5 times, far lower than Hyperliquid's 7.6 times, ridiculously cheap.

Take a closer look at a closer competitor, Aster. Aster's TVL is comparable to Lighter's, with an Open Interest (OI) of about one billion more than Lighter's. However, its FDV reaches up to 7 billion, with a circulating market cap of around 2 billion. In contrast, Lighter's trading price is only one-third of Aster's.

Ask yourself: Even considering Aster's Binance/CZ halo, is Lighter's price at only one-third of Aster's reasonable? In my opinion, based on the current valuation, Lighter is severely undervalued fundamentally.

Looking at the fundamentals, you will find that only two tokens can sustain a high revenue multiple in the long run: Hyperliquid and DYDX. Why? The former has the most transparent buyback mechanism, while the latter has stood the test of time in this industry. Unlike other listed Perp Dexes, Lighter does not have a top-tier influencer like CZ or liquidity support from Coinbase to artificially pump, nor does it face the dilemma of "lack of real users" like other competitors.

Additionally, it is important to note that the over-the-counter market (SOTC) usually carries a discount because buyers bear default risks (if the opening price is twice as high as the OTC transaction price, sellers have an incentive to default), which causes people not to offer high prices in OTC but to wait and see the actual listing performance.

I choose to annualize based on the revenue of the last month for a reason: in the crypto world, everyone only has a 7-second memory, and no one has the ability to see clearly or trade for the future a year later. Therefore, only the immediate revenue of the last month is the most important indicator.

Funds Flow

The reason why Hyperliquid was able to break out on an independent trend is that many early LPs did not believe in its model. This led to those sharp-sighted retail investors sweeping all the chips and then selling to the belated buyers at a high price.

In conversations with a large number of VCs over the past few months, I have noticed a phenomenon: except for Paradigm, almost everyone missed out on Hyperliquid. This means that every VC with a liquidity fund (the vast majority of them do) will try to catch the next $HYPE.

Who is the next Hyperliquid? It's quite simple; just do a "pattern matching" between Lighter's storyline and Hyperliquid, and you'll find it's Lighter.

Looking at the token distribution, you will find: the large holders of Hyperliquid have also become the large holders and deep users of Lighter. The secret to wealth for this group of people is simple: Hold

errorToken Buyback

Passive spot buying is the only thing that can support the coin price. BTC has MicroStrategy's Saylor, ETH has Tom Lee, but for altcoins, the market only recognizes income buybacks. If you want to keep the price firm, you need passive buying in the form of buybacks. Hyperliquid understands this well.

Lighter is essentially a replica of Hyperliquid. Founder Vlad has made it clear that they will conduct buybacks. While you can't expect them to buy back 97% of the tokens, buying back 30% or 50% is reasonable. As long as there is an eight-figure (tens of millions) passive buy, this is attractive enough.

Note: In their $68 million financing (mainly for the insurance fund), the team has allocated some funds for token buybacks at TGE. This is similar to the early Hyperliquid's $75 million spot buy.

Deep Integration with Robinhood

Vlad Tenev (Robinhood's Vlad1) previously interned at Addepar for Vlad (Vlad2) from Lighter, and that's how they met. Robinhood is an investor in Lighter, and Vlad1 is also an advisor to Lighter.

There have been numerous rumors in the industry about using Lighter on Robinhood's chain. Lighter's goal is composability and will be integrated into Ethereum L1, ultimately achieving collateralized LLP token lending. This composability aligns with Robinhood's vision of "tokenizing everything" and putting everything on-chain.

While this is speculation, I support the argument that Robinhood will acquire a significant stake in Lighter (whether through tokens or equity). Given the similarity of their Payment for Order Flow (PFOF) models, I speculate that once Robinhood holds Lighter shares, it will redirect a significant portion of its traffic to Lighter. This will further strengthen this narrative.

RWA Trading

Although not limited to Lighter, RWA contract trading has proven to be a key early product-market fit. Data shows that Lighter's daily trading volume for all RWA products is $517 million, with an open interest (OI) of $271 million. Compared to Hyperliquid, Lighter is quickly catching up and even surpassing.

One key distinction is that Lighter's RWA service is not provided by a third party in the ecosystem, but rather self-operated. This makes coordination and onboarding of new assets smoother and faster. Additionally, Lighter's majority of trading volume comes from its FX contract, while Hyperliquid is mainly index contracts (80%). Ultimately, this will evolve into a pure competition of liquidity and order book depth to vie for users.

Hyperliquid's First True Competitor

The derivative market is growing rapidly, and despite a loyal fan base on Twitter shouting "Hyperliquid is the only one," the market is large enough to accommodate multiple top players. Robinhood has also opened up futures trading, as futures have a strong foothold in the crypto space and are indeed a superior trading method compared to options.

Solving the full collateral issue is the most critical challenge that Hyperliquid has outsourced to Flood and Fullstack Trade. To my knowledge, Flood is at least 6 months away from solving this problem. Lighter's larger team is more likely to tackle this challenge. Yes, Hyperliquid has a first-mover advantage, but if Lighter can swiftly integrate this feature, they may well take a slice of their cake.

Privacy

While Hyperliquid has built a cult-like community culture, its architecture has a fatal flaw for whales: complete transparency.

On Hyperliquid, leaderboards and on-chain data broadcast every large position, entry price, and liquidation point to the world. This turns trading into a PvP arena where predatory players like me can specifically hunt whales' liquidation orders and front-run large funds. Leveraging liquidation data to predict short-term tops and bottoms is traceable, and I know many traders continue to profit through this strategy.

Lighter positions itself as the antidote to this risk. By obfuscating trading flows and shielding position data, its operation is more akin to an on-chain dark pool rather than a standard DEX. For "smart money" and large funds, anonymity is not just a feature—it is a necessity. If you have a significant amount of funds, you absolutely cannot trade in a place that directly exposes your hand and liquidation point to the counterparty. As DeFi matures, venues that can protect user alpha will inevitably attract the largest flows of funds.

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