Stargate Finance (STG) Price Prediction

Deep Dive

1. LayerZero Merger Execution (Mixed Impact)

Overview:
Stargate’s DAO approved a full absorption into LayerZero’s ecosystem in August 2025, swapping STG for ZRO at 1:0.08634. The deal redirects 50% of Stargate’s revenue to ZRO buybacks after a six-month staker payout window, dissolving STG’s independent governance.

What this means:
While streamlining development, the fixed swap ratio (valued STG at ~$0.17 pre-vote) risks undervaluation given Stargate’s $20M+ annual revenue potential. Short-term price hinges on seamless integration and whether LayerZero’s expanded cross-chain utility attracts new capital.

2. Cross-Chain Bridge Wars (Bearish Risk)

Overview:
Stargate competes with Wormhole, Axelar, and Across in a sector where revenue depends on transaction volume. Wormhole’s $120M cash bid rejection (Yahoo Finance) suggests Stargate prioritized ecosystem alignment over immediate returns.

What this means:
Failure to maintain market share post-merger could pressure STG/ZRO liquidity. However, LayerZero’s integration with 50+ chains (including Solana and Hedera) provides a moat if adoption accelerates.

3. Holder Sentiment & Technicals (Neutral)

Overview:
STG’s RSI (44–53) and MACD show neutral momentum, while 19.5% supply concentration by top holders heightens volatility risk. Community debates center on lost staking yields and LayerZero’s tokenomics.

What this means:
Price stability depends on whether retail investors accept ZRO as a value accrual vehicle. Watch for whale movements and ZRO’s post-merger buyback pace (CoinJournal).

Conclusion

STG’s fate now ties to LayerZero’s ability to monetize cross-chain activity amid sector consolidation. While the merger reduces operational friction, it introduces dependency risks and valuation uncertainty. Can ZRO’s buyback mechanism offset Stargate’s historical underperformance? Monitor Q1 2026 revenue splits and LayerZero’s Hydra upgrade rollout.