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Stargate finance price prediction: DeFi meets sci-fi

By Capital.com Research Team

12:59, 23 August 2022

A block in the middle of a portal
Stargate Finance is an ecosystem of portals that can send assets across different blockchains – Photo: BOTCookie / Shutterstock

Like the name suggests, Stargate Finance is a platform dedicated to portals and transportation. But rather than humans, the protocol is sending digital assets across many different blockchains. 

The protocol has already seen success after launching earlier this year. Its total value locked (TVL) soared above $4bn in April and its native token, STG, was met by an initial breakout. 

However, STG did not fare well in the recent crypto crash with the token plummeting below its launch price. But a recent Binance listing has seen a resurgence of momentum in the token’s value. 

What is stargate finance (STG)?

Sending assets across different cryptocurrency networks has always been recognised as a major challenge in the world of blockchain. Stargate Finance was developed on the omnichain interoperability protocol Layer Zero to make this process easier with its portals across different networks. 

There are three main benefits that should be included in any bridge, according to Layer Zero’s Canadian co-founder Ryan Zarick. These include a guaranteed destination for funds, unified liquidity and access to user-desired assets. 

In reference to the potential benefits of this for decentralised applications (dApps), Stargate Finance’s website says:

“With Stargate, users and dApps can transfer native assets cross-chain while accessing the protocol’s unified liquidity pools with instant guaranteed finality. The universe is infinite with Stargate.” 

The main utility that the Stargate Finance protocol is offering is the opportunity for investors to transfer assets at a 1:1 ratio across blockchains.

As the same cryptocurrency can exist on different chains, Stargate Finance gives users the chance, for example, swap one Tether (USDT) based on the Solana blockchain for a BNB Chain-based USDT.

A governance and staking token

Stargate Finance developed its own token to expand its offerings to users. As well as swaps, the platform offers liquidity pools and farming. Pools give providers a chance to earn stablecoins in return for their service.

Meanwhile, investors can also farm their tokens and earn the native stargate finance (STG) token. They can then choose to stake these tokens to start earning veSTG, its governance coin.

Governance tokens are used as a management method for investors to have a say on the future direction of a protocol. For example, a recently-passed proposal by the Stargate Finance community involved plans to diversify liquidity. 

STG’s past performance

STG price chart

Source: CoinMarketCap

ETH/USD

3,117.15 Price
-7.590% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 6.00

SOL/USD

168.83 Price
-6.740% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 2.2652

XRP/USD

0.61 Price
-4.110% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.01168

DOGE/USD

0.12 Price
-6.350% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.0012872

The STG token went live on 17 March 2022 through a pre-sale auction of 100 million tokens, which was met with great demand and sold out in two blocks. But its first day of trading, on 18 March, saw stargate finance dip from its opening price of $1.92 to its all-time low of $0.10, according to CoinMarketCap

STG managed to turn this around and saw its largest surge to date over the following month. The cryptocurrency was listed on both the FTX and Bybit exchange on 25 March, which fuelled a breakout to its all-time high of $4.28 on 2 April.

This rally also matched a surge in the platform’s TVL. It soared from $1.43bn on 22 March to $4.17bn on 6 April. 

The token traded sideways for the rest of the month. Its long awaited staking feature went live in late-April, along with its first governance proposal.

However, the recent crypto crash was particularly devastating to the decentralised finance (DeFi) industry and subsequently Stargate Finance. Its token plummeted below its launch price in May and continued this bearish trend until it reached a low of $0.33 on 18 August.

But the price picked up the following day as Binance announced support for STG. Stargate finance climbed to $1 on 20 August. But it has since lost some of these gains and, at the time of writing, on 23 August, STG was trading at $0.75.

Stargate finance price prediction round-up

At the time of writing, there was a range of STG price predictions. DigitalCoinPrice expected a gradual rise and said it could have averaged out at $0.99 this year. Its stargate finance price prediction for 2025 estimated it could have reached $1.45 and perhaps continued to $3.51 in 2030.

Similarly, CryptoPredictions suggested it could have seen a steady rise over the coming years. Its stargate finance crypto price prediction suggested an average price of $0.88 in December this year. It was then predicted that it could have gone on to $1.32 at the end of 2026. 

PricePrediction gave a bullish forecast and said a new all-time high was on the cards for STG. It was thought that it could have achieved a maximum of  $1.59 in 2025 and $2.22 in 2026. Its stargate finance price prediction for 2030 suggested it could have reached an average of $8.63.

Meanwhile, WalletInvestor described it as a “bad” investment and the stargate finance price prediction for 2022 was that it could have stooped to $0.01 in a year. It was then anticipated that it could have fluctuated between $0.01 and $0.04 over the next five years.

When considering a stargate finance coin price prediction, it’s important to keep in mind that cryptocurrency markets remain extremely volatile, making it difficult to accurately predict what a coin or token’s price will be in a few hours, and even harder to give long-term estimates. As such, analysts and algorithm-based forecasters can and do get their predictions wrong.

If you are considering investing in cryptocurrency tokens, we recommend that you always do your own research. Look at the latest market trends, news, technical and fundamental analysis, and expert opinion before making any investment decision. Keep in mind that past performance is no guarantee of future returns. And never trade with money that you cannot afford to lose.

FAQs

How many stargate finance are there?

As of 23 August, there was a circulating supply of 133 million STG and a maximum supply of one billion tokens.

Is stargate finance a good investment?

Stargate Finance is a platform dedicated to providing bridges across blockchains. This is giving investors the chance to send assets to different networks.

In volatile cryptocurrency markets, it is important to do your own research on a coin or token to determine if it is a good fit for your investment portfolio. Whether the STG token is a suitable investment for you depends on your risk tolerance and how much you intend to invest, among other factors. Keep in mind that past performance is no guarantee of future returns. And never invest money that you cannot afford to lose.

Will stargate finance go up?

It depends on who you ask. While PricePrediction has suggested a new all-time high is possible, WalletInvestor expected it to continue depreciating and could have slipped to $0.01 in a year.

In volatile cryptocurrency markets, it is important to do your own research on a coin or token to determine if it is a good fit for your investment portfolio. Whether the stargate token finance is a suitable investment for you depends on your risk tolerance and how much you intend to invest, among other factors. Keep in mind that past performance is no guarantee of future returns. And never invest money that you cannot afford to lose.

Should I invest in stargate finance?

STG has been on a bearish trend since the recent crypto crashes and has stooped below its launch price. But the recent listing from Binance has seen a surge in the token’s value. 

Whether you should invest in STG is a question that you will have to answer for yourself. Before you do so, however, you will need to conduct your own research and never invest more money than you can afford to lose because prices can go down as well as up.

 

Markets in this article

BNB/USD
Binance Coin / USD
573.02 USD
-13.82 -2.380%
SOL/USD
Solana / USD
168.8276 USD
-12.1418 -6.740%

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