STG price went parabolic on Friday after being listed in Binance, the biggest exchange in the world. The Stargate Finance token jumped by more than 80% and soared to the highest level since June 1. It has recovered by about 100% from its lowest level this week, giving it a market cap of over $69 million.
Binance lists Stargate Finance
Stargate Finance is a relatively small blockchain project that is in the decentralized finance (DeFi) industry. It describes itself as the first and only bridge that solves the three main challenges that bridges face.
These challenges are related to instant guaranteed finality, unified liquidity, and native assets. It has features that enable people to wrap all existing DeFi applications.
Also, users and dAapps can easily transfer native assets cross-chain while accessing unified liquidity pools with instant guaranteed finality. Stargate has a total value locked (TVL) of over $448 million, according to its website.
STG is the native token for Stargate Finance. It is the governance token that helps to run the Decentralized Autonomous Organization (DAO). Stargate liquidity providers can provide their LP tokens in exchange for STG rewards.
The STG price went parabolic on Friday after Binance announced that it will list the coin in its platform. This means that millions of people who use Binance will have access to the coin.
Historically, cryptocurrencies tend to rise when they get listed by leading exchanges like Coinbase and Robinhood. However, these gains are usually short-lived as investors start to quickly take profit.
Stargate Finance also rose after OmniBTC integrated with Layer Zero Labs and the platform. This means that users can easily OmniSwap among EVM chains.
STG price prediction
The four-hour chart shows that the Stargate Finance price has been in a downward trend recently. This decline saw it drop to a low of $0.33 this week. It then went parabolic on Friday after the Binance listing.
As it rose, it managed to move above the important resistance point at $0.5452, which was the highest point on June 28. It also rose above the 25-day and 50-day moving averages.
Therefore, as mentioned, these pumps that happen after a listing are usually temporary. As such, there is a high probability that the coin will drop and even move below the support at $0.50.
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