There has been a remarkable development regarding Targate Finance’s native token STG. The cryptocurrency project’s altcoin price suddenly lost over 80% of its value. Stargate Finance’s native token STG experienced a sharp drop of 87% on the Binance exchange in just a few seconds, causing concern in the crypto community. This rapid price change is attributed to various factors, including major sell-offs by a major investor, lack of liquidity, or technical issues with the protocol. Here are the details...
The cryptocurrency world has experienced a surprising development in recent days. Stargate Finance’s native token STG has suddenly lost 87% of its value on the Binance exchange. On the STG/USDT trading pair on the Binance platform, STG experienced a price drop of 87.23% in one minute, falling to $0.0525, with a trading volume of $2.39 million. However, after this sharp decline, the altcoin has started to recover. As of the moment of writing, STG is trading at $0.3823, with a 24-hour decline rate of 6.73%. It should also be noted that this price movement is not only on the STG/USDT perpetual contract trading pair on Binance.
The exact reasons for this dramatic price movement are not known, but several possibilities stand out. According to some, the decline may have been caused by a large amount of STG sales by a large investor (whale). According to other claims, insufficient liquidity and technical issues in the protocol may have triggered the price decline. Large sales by large investors on low-volume tokens can cause rapid declines in prices. In addition, problems in liquidity pools and technical glitches can also cause prices to fall rapidly. Algorithmic trading bots may have also triggered sudden market movements, and this should not be ignored.
Stargate Finance is a project developed by the LayerZero Labs team. This project, which aims to be a strong competitor to Synapse Protocol, functions as a cross-chain decentralized exchange (DEX). Users of the STG application can transfer tokens such as USDC, USDT, BUSD, FRAX, ETH between different chains at a 1:1 ratio. Stargate has the $STG token, which is used as the governance token for the protocol. Users are paid $STG tokens in return for depositing stablecoins that provide liquidity for cross-chain swaps. Many people see the Stargate Finance platform as an effective method for moving stablecoins securely between different chains. It is also considered a safe platform for those who want to earn returns by investing in coins.
