ZRO Price Soars 26% as LayerZero Unveils $110M Stargate Acquisition Plan

The crypto market kicked off the week with bullish momentum as LayerZero Foundation revealed a $110 million proposal to acquire the Stargate cross-chain bridge. This sparked a sharp rally in both LayerZero’s ZRO token and Stargate’s STG token, which surged 26% and 20% respectively in the past 24 hours.

The proposal, posted on Stargate DAO’s forum, seeks to dissolve the Stargate DAO and phase out the STG token. In its place, holders would swap each STG for 0.08634 ZRO through a fixed-rate redemption contract. This shift would make ZRO the sole token powering the merged ecosystem while maintaining uninterrupted bridge.

If approved, LayerZero will assume full control over Stargate’s operations, with revenues redirected toward ZRO buybacks, a move intended to strengthen the token’s long-term value.

Following the announcement, ZRO climbed to $2.30, accompanied by a 540% surge in trading volume. Analysts suggest that breaking above $2.80 could pave the way toward the $3 psychological level.

In parallel, the STG token experienced a rise of over 20% within the last 24 hours, reaching $0.20 at present. This positive movement reflects investor confidence in the token’s prospective performance in the cryptosphere.

While enthusiasm is high, the proposal has drawn mixed reactions from STG holders, with some arguing the swap undervalues their tokens and removes staking rewards. The proposal requires a 70% supermajority vote from the DAO to pass, with community discussions underway.

LayerZero’s acquisition proposal is structured as a strategic alignment intended to combine governance, improve technical efficiency, and support ongoing development.

Stargate, launched by LayerZero in 2022, has processed over $70 billion in cross-chain transactions but has struggled to translate its network activity into sustained STG token growth.

CEO Bryan Pellegrino described the plan as a “single unified direction” for both projects, allowing Stargate to execute on an ambitious roadmap while benefiting from LayerZero’s broader infrastructure.

Supporters believe merging tokens will eliminate inefficiencies and consolidate brand recognition in the competitive cross-chain market. If approved, the LayerZero–Stargate merger could reshape the cross-chain interoperability landscape, positioning ZRO for continued gains in the weeks ahead.

Cover image from ChatGPT, ZROUSD chart from Tradingview