Stargate Finance (STG) pumps and dumps as whales cash in on Upbit listing and V2 launch

On May 30, Stargate Finance (STG) price skyrocketed by 77% within two hours of its listing on Upbit and launch of Stargate V2.

This surge propelled the STG price from $0.682 to a peak of $0.8569.

What is Stargate Finance?

Stargate Finance’s omnichain liquidity transport protocol is designed to address the blockchain trilemma, aiming to balance decentralization, security, and scalability.

The platform facilitates seamless cross-chain transfers of native assets, providing near-instantaneous transactions across various blockchains and Layer-2 networks.

It currently supports transfers between eight chains, including Ethereum, Avalanche, Polygon, and BNB Chain, enhancing its appeal in the decentralized finance (DeFi) ecosystem.

Upbit listing and Stargate V2 launch impact on Stargate Finance (STG)

The introduction of the STG/KRW trading pair on South Korea’s premier crypto exchange, Upbit, significantly boosted investor interest and trading volume, reaching a staggering 788 million in daily trading and pushing the market capitalization to approximately $140 million.

The launched Stargate V2 upgrade, dubbed DeFi’s most cost-effective bridge, introduced V2 Pools and Incentives, allowing users to deposit liquidity and benefit from improved transaction efficiencies.

The enhanced features of Stargate V2 were a significant draw for investors, further fueling the bullish momentum.

The Stargate Finance price surge was short lived

Stargate Finance price surge was however, short-lived as the token experienced a sharp price correction in the following hours despite the initial enthusiasm.

At press time on May 31, STG’s value had fallen by 21% from its previous high, bringing it down to $0.6797.

The market cap had also seen a decrease of 17.71%, settling at $141,726,623.

Interestingly, the 24-hour trading volume continued to rise, reaching $420,077,400, indicating sustained trading activity despite the price drop.

Whale activity’s hand in the current STG price correction

While the sudden STG price dump has caught traders who had hoped to capitalize on the listing and V2 upgrade news by surprise, the price decline was not without cause.

A notable whale associated with Wallet 0x22d, transferred 10.25 million STG tokens, valued at $8.8 million, to Binance.

These tokens, initially vested from Stargate Finance on April 9, 2024, at a price of $0.792, were strategically sold during the price surge, showcasing classic pump-and-dump behavior.

However, in addition to the huge disposal by the Stargate whale, the Relative Strength Index also points to an overbought condition which could also be a reason for the market cool-off.

Stargate Finance price chart

All eyes are now on how low the correction will go, especially seeing that the token had fully recovered the sudden drop that occurred on April 12.

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