An unexpected price movement occurred in the Stargate Finance (STG) token traded on Binance. The STG price lost 87% of its value in just a few seconds on the Binance platform, sending investors into panic.
The price fell to $0.0525, then quickly recovered to $0.38. Experts say that this sudden and sharp decline may be related to low liquidity in the trading pair and a massive sell-off. They also emphasize that this sharp fluctuation in STG once again shows how risky it is to avoid using more leverage and to trade without stop-loss.
Stargate Finance (STG) is a multi-chain native asset bridge that aims to solve the traditional blockchain trilemma that blockchains cannot be decentralized, secure, and fast at the same time. It simplifies cross-chain DeFi transactions by allowing users to transfer and exchange their assets almost instantly between different blockchains, layer-2 networks, and decentralized applications (dApps).
Stargate users can also move their assets between different liquidity pools, allowing them to trade more efficiently on decentralized finance (DeFi) protocols and dApps. The protocol supports transfers across eight different chains, including Ethereum (ETH), Avalanche (AVAX), Polygon, Metis, BNB Chain, Arbitrum (ARB), Optimism (OP), and Fantom (FTM).