The recent Downtrend period has caused many companies in the crypto industry to go bankrupt, some typical faces such as 3AC, Celsius, Luna, FTX, Alameda. But Stargate Finance a Cross-Chain Bridge has recorded revenue growth of more than 200% in the last 3 months, November also recorded extremely positive figures. So what are the investment opportunities for Stargate's $STG token? Let's find out with Holdstation through this analysis.
What is Stargate Finance?
Stargate Finance is a cross-chain bridge that supports the movement of crypto assets between blockchains.
For those new to the crypto market, it simply means that if you want to transfer USDC from the Polygon network to Arbitum, Stargate Finance will help you do it in a short time.
Stargate Finance is the first Dapp built on LayerZero, an Omnichain dApps, allowing dApps on different blockchains to still interact with each other.
Tokenomic, token unlock date and token allocation
Basic information about tokenomic or token allocation can be viewed here, Holdstation had an article about Stargate Finance before.
Regarding the unlocking token schedule, it will take more than 3 months for Stargate to have the next unlock schedule, so in the near future, the price of $STG will not be under selling pressure from the token unlocking.
Usecase of $STG
Users can stake $STG to receive $veSTG rewards and vote on Stargate's governance strategies here
Or users can provide liquidity to Stargate to get back the reward of STG tokens here
The potentials of Stargate Finance
First of all, it is impossible not to mention the amazing revenue growth during the downtrend season of Stargate Finance. According to data from Token Terminal, Stargate Finance's revenue in the last 3 months has grown by about 223.8 percent. November also recorded numbers such as the largest trading volume, or the number of transactions also peaked since May this year.
In the traditional financial market, the price of a growth stock will depend on the business results of the company or the stock company. The same is true of crypto, although it also depends on many other factors. However this is one of the important positive statistics for the price of $STG
Stargate's revenue comes from transaction fees and the amount of this transaction fee according to Stargate's whitepaper has been distributed proportionally as follows:
The transaction fee when there is any transaction made on Stargate will be divided into 6 parts. Of which 4 parts will flow to the protocol, 1 part will flow to liquidity providers and 1 part will flow to users participating in staking.
If we look at the distribution of profits, we will not see clearly where the increased revenue will drive the price of the token up. But if you look at the indirect perspective, the revenue growth has proved that the project is creating a very good product and attracting a lot of users to trust and use the project's product. It is this that is the driving force for the increase in the price of the token.
Trend moves to DEX
After the crash of FTX and thousands of different reasons and inadequacies, users are gradually tending to move to DEXs more. The manifestation of this action is that the price of dex tokens has recently had a strong pump back. This trend of shifting to dex will also indirectly bring many positive points for Stargate, as the number of DEX users increases, the demand for transferring assets between chains will also increase. This point is the potential from a long-term perspective of the individual writing for Stargate.
Price pattern analysis
The price line of the $STG token in the H4 frame chart is tending to break the trendline and backtest, in terms of the short-term trend, $STG is trending down according to the general momentum of the market and BTC. So according to the short-term trend, investors can watch the price of $STG backtest trendline and short $STG with small leverage and 5% capital (x2-x3).
However, investors are also somewhat concerned about a bridge project, when this time of year there have been a lot of bridge hacks and stolen assets from hackers, causing the token price to fall miserably. like the case of Axie or ETHW. The security issue of the bridges is still leaving many concerns for users.
Therefore, being prudent in investment capital management and carefully studying projects are also skills that every investor needs to hone.
Despite being in the Downtrend, Stargate Finance has shown impressive numbers.At the time of writing the price of the STG token is trading around $0.42. 3 investors can consider disbursing 5-10% of capital at $0.355 with the target of long-term holding. Investment decisions are personal to each person, always adhere to the principles of capital management to ensure your assets.
The information, statements and conjecture contained in this article, including opinions expressed, are based on information sources that Holdstation believes those are reliable. The opinions expressed in this article are personal opinions expressed after careful consideration and based on the best information we have at the writing's time. This article is not and should not be explained as an offer or solicitation to buy/sell any tokens/NFTs.
Holdstation is not responsible for any direct or indirect losses arising from the use of this article content.