ZRO Token Rallies 26% Following LayerZero’s $110 Million Acquisition Proposal
The crypto market has shown bullish momentum with LayerZero Foundation's $110 million proposal to acquire Stargate cross-chain bridge, leading to a 26% rise in ZRO and a 20% increase in STG tokens within 24 hours.
- The proposal aims to dissolve Stargate DAO and replace the STG token with a fixed-rate redemption of 0.08634 ZRO per STG.
- If approved, LayerZero will take control of Stargate’s operations and redirect revenues for ZRO buybacks.
- ZRO's price reached $2.30, with trading volume increasing by 540%. Analysts predict breaking above $2.80 could lead to $3.
- STG is currently valued at $0.20, reflecting investor confidence despite mixed reactions from STG holders regarding token valuation and staking rewards.
- The proposal requires a 70% supermajority vote from the DAO, with community discussions ongoing.
LayerZero's acquisition strategy aims to enhance governance and technical efficiency. Stargate has processed over $70 billion in transactions but struggled with sustained STG growth. CEO Bryan Pellegrino emphasized a unified direction to advance both projects and enhance brand recognition in the competitive market.
This merger could significantly impact cross-chain interoperability and position ZRO for further gains.