Join Our Telegram channel to stay up to date on breaking news coverage
Due to the sudden crash in the cryptocurrency market over the last two days, several investors have been facing a major dilemma. While a majority of the community was showing signs of excitement and a positive sentiment due to the relief pump in Bitcoin and other altcoins, it came as a shock when the prices dropped at a steady pace since yesterday.
However, Stargate, a newer project in the space managed to overcome the bearish barrier that was being seen in the market. Infact, it shot up in price by several times before correcting to a lower range yesterday. This sudden increase in price left a huge number of investors wondering what development contributed to its pump.
Why the sudden pump?
Stargate has been growing in terms of its infrastructure for the past couple of weeks. It has ensured to keep the community updated about any developments in the project at regular intervals. While these positive factors did influence the interest for the STG token, they didn’t have any major effect on the price.
However, the main reason for the sudden jump in prices can be speculated to be the recent listing on Binance, the world’s top cryptocurrency exchange in terms of traded volume. The STG token was listed on Binance on the 19th of August, causing it to grow at an exponential rate due to the heavy hype and exposure to a huge pool of Binance investors.
What is Stargate?
Launched in March 2022, Stargate is a cross-chain protocol that has been created to assist users with transferring assets between various blockchains easily. As a project set in the Defi universe, Stargate has managed to lock tokens worth more than $500 million, positioning it as a reputable name in the industry.
It is a community-driven platform, which has effectively been building the first ever fully composable native asset bridge. Stargate is also the first major dApp to be built on LayerZero. The project boasts of being the solution to three major issues faced by the industry today through its features:
- Instant Guaranteed Finality– A correctly committed transaction on the source chain is guaranteed to successfully reach the destination chain instantly.
- Unified Liquidity– Single liquidity pool with shared access for better liquidity.
- Allowing Native Asset Transfers– Stargate allows native asset transfers instead of wrapped assets, reducing costs and efforts.
At the time of writing, the platform has more than $500 million worth of locked tokens. It also aims to create several other options for users that can ease transfers between different chains. Investors can stake STG, the native token of Stargate to receive veSTG, which is 1:1 to STG in value.
Stargate had gained much traction on its launch too, following announcements about being backed by Alameda Research, an extremely popular quantitative crypto trading firm in the industry. The token had been consolidating at the $0.4 range for a brief period following a major correction from its all-time high of $4.2 in April.
Your capital is at Risk
About any further potential
The current scenario of the industry has been ensuring that only the projects with decent utility survive, shaking off a huge number of platforms that do not feature strong fundamentals. Stargate can be regarded here as an ecosystem that features great potential due to its innovative use case.
But that does not essentially ensure that the project may be a success. It has to be noted that a huge number of projects are now being introduced into the market that has been based on the concept of Defi. Stargate provides an innovative solution to a variety of problems faced by blockchain users but is contested by several tokens.
The speed of infrastructure growth and community engagement will be crucial in determining the future growth of the project.
Price Prediction
Since it plunged from its all-time high back in April, the STG token had seen a stagnant period in terms of price action. This was likely changed entirely due to the recent Binance listing, which created room for the major popularity of the token.
Currently, Stargate is trading at around $0.7 since it corrected from the recent top at about $0.95. However, owing to its recent popularity and continuous development, STG may be set to explore newer price ranges as the market takes a bullish approach.
Your capital is at Risk
Read More
Join Our Telegram channel to stay up to date on breaking news coverage
