The Wormhole Foundation has formally challenged LayerZero’s $110 million acquisition proposal for the Stargate protocol by preparing a counter-offer and requesting a temporary suspension of the governance vote to allow for thorough due diligence. This request for a five-business-day pause aims to provide sufficient time for a detailed evaluation of Stargate’s assets and operations, thereby enabling Wormhole to present a higher, more attractive bid. The Foundation contends that LayerZero’s initial offer undervalues Stargate’s current holdings and future revenue potential, emphasizing the need for fairness and transparency to guarantee the Stargate community can make an informed decision. This move signals a potential heated bidding war for the rapidly growing cross-chain protocol.
LayerZero’s proposal involves an exchange of $110 million in ZRO tokens for Stargate’s assets, which include approximately $92 million in stablecoins, Ethereum, and other holdings, alongside rights to future revenue streams generated by the protocol. Despite these components, some market observers and participants have criticized the offer as insufficient, arguing that it does not fully reflect Stargate’s rapid growth or the intrinsic value of its ongoing business. This criticism focuses on the potential mispricing of Stargate’s token holder returns and the protocol’s expanding ecosystem. Furthermore, Stargate’s integration across over 80 blockchains highlights its extensive cross-chain interoperability and network reach.
Stargate’s financial metrics demonstrate substantial operational strength, with a total value locked (TVL) of $345 million as of August 2025, a treasury comprising $76.47 million in stablecoins, $15.9 million in Ethereum, and $55 million in Stargate tokens, plus additional assets valued at $5.24 million. The protocol’s projected annual revenue stands near $2 million, supported by robust cross-chain integrations. Notably, Stargate’s bridge volume surged to $4 billion in July 2025, a tenfold increase compared to the previous year, spanning over 80 blockchains, which underscores its growing significance in decentralized finance (DeFi) cross-chain infrastructure.
The market’s reaction to Wormhole’s counter-offer has been marked by a more than 10% increase in the Stargate token price and intensified community debate regarding the asset’s fair valuation. Calls for a competitive bidding process reflect a desire to maximize value for token holders, with the suspension of the governance vote seen as essential for thorough review. Strategically, the acquisition contest highlights tensions within the DeFi ecosystem over asset valuations and potential consolidation in cross-chain infrastructure, where scale and network effects play essential roles. Wormhole’s position stresses the importance of a fair deal and a transparent governance process to safeguard stakeholder interests and the protocol’s future trajectory.
