Wormhole challenges LayerZero with a higher counteroffer for the acquisition of Stargate, a bridge protocol that generated 4 billion in volumes in July 2025 and has over 345 million in TVL.
The 110 million offer from LayerZero is deemed undervalued by Wormhole, which promises a competitive bidding war and asserts that STG holders deserve better.
A Stargate – Wormhole merger would create a major cross-chain hub, reshaping competition and strengthening the strategic value of bridges in DeFi.
A Nine-Figure Battle to Seize a Major Bridge
Stargate, one of DeFi’s most used bridge protocols, is now a target of desire. After LayerZero’s offer of 110 million dollars in tokens, Wormhole enters the scene with a counteroffer claimed to be more generous. The goal: postpone the scheduled governance vote to allow the community time to review this new proposal.
This tug-of-war is far from trivial. Stargate is not a secondary protocol: in July 2025 alone, the bridge processed 4 billion dollars in volumes. Its treasury still holds 345 million in TVL, along with a stash of 92 million in stablecoins and ETH, and around 55 million more in STG and other assets. Add to that 2 million in annual revenue, and you understand why several cross-chain giants are vying to take control.
Why Wormhole Absolutely Wants Stargate
The Wormhole Foundation believes that LayerZero’s offer is severely undervalued. They argue that transferring the treasury and future revenues for only 110 million represents a “discount” that harms STG holders. Hence this offensive: “STG holders deserve better“, insists Wormhole, promising a competitive process and a bid “significantly higher“.
If successful, the merger between Wormhole and Stargate would create one of the largest inter-chain hubs in crypto. Stargate would bring its unified liquidity pools, while Wormhole would add its network already integrated with dozens of blockchains. The result: more volume, more resilience, and especially a strong signal for the cross-chain ecosystem, still marked by the repeated hacks of recent years.
A Match to Watch Closely for Investors
Beyond the numbers, this case reveals the current challenges of DeFi. Bridge protocols are no longer just technical tools: they are becoming strategic infrastructures. Controlling Stargate means gaining access to colossal financial flows, an already established brand, and a loyal user base.
Wormhole therefore demands a five-day extension to finalize its offer and push governance to decide transparently. The next hours will be decisive: either the STG community validates the agreement with LayerZero, or it chooses to open the door to a potentially more lucrative bidding war.
Potential Impact on the Crypto Market
A Stargate – Wormhole union would reshape the cross-chain landscape. This could lead to a concentration of liquidity in their ecosystem, forcing other players to align or merge to avoid losing competitiveness. STG investors hope to see the value of their token supported by this acquisition battle.
At a time when volumes are soaring and each bridge aims to establish itself as the essential gateway to multi-chain, this duel between Wormhole and LayerZero is a real-life test. The governance of Stargate faces a crucial choice: cash in quickly or bet on a more ambitious future.
