Wormhole Foundation Challenges LayerZero’s Acquisition Proposal Amid XRP Market Turbulence

By: Eliza Bennet

The cryptocurrency ecosystem has been abuzz with two significant developments impacting major players in the market. On one hand, Wormhole Foundation has confronted LayerZero’s proposed $110 million acquisition of Stargate Finance, asserting that the offer undervalues the cross-chain bridge protocol. On the other, XRP has been facing turbulent market conditions due to whale sell-offs and regulatory uncertainties.

The Wormhole Foundation entered the bidding for Stargate Finance, challenging LayerZero’s acquisition that proposed purchasing all circulating STG tokens at approximately $0.1675 per token. This proposal, according to Wormhole, fails to capture Stargate's true value. The protocol boasts impressive performance metrics, including a $4 billion bridge volume processed in July 2025 and a treasury holding of over $92 million. Wormhole advocates for a higher offer, citing the protocol’s significant assets and growth momentum as well as the importance of valuing its brand, codebase, and team. Meanwhile, LayerZero positions the acquisition as an ecosystem consolidation, proposing to direct future Stargate revenue towards ZRO token buybacks and expanding beyond traditional bridging services. This proposal requires approval from STG holders, demanding a 70% consensus through Stargate's governance process.

Parallelly, XRP's market trajectory has been on a decline, dropping below the $3.00 threshold, currently trading at $2.8. This downturn follows significant whale sell-offs wherein 470 million XRP tokens were offloaded. The XRP market has also been hit by regulatory uncertainties as the U.S. Securities and Exchange Commission delayed decisions on several XRP ETF applications. This has caused heightened volatility in the market, with traders closely watching the $2.8 support level. Any failure to maintain this support could herald further declines, whereas reclaiming $3.00 may signal a potential market recovery.

The developments with Stargate and XRP highlight the dynamic nature of the cryptocurrency market where acquisitions and regulatory landscapes play critical roles in shaping market sentiments and performance. Participants in these ecosystems are closely monitoring how these situations unfold to assess future strategies and impacts.