Research Report | In-depth Analysis of PumpBTC & PUMP Market Valuation
Project Overview
PumpBTC is a Bitcoin liquid staking protocol built on Babylon. Users can stake BTC derivatives such as BTCB and WBTC to mint $pumpBTC, a 1:1 pegged token with liquidity that can be used in DeFi scenarios while continuously earning native yield distributed by the Babylon protocol. Unlike traditional PoS staking models, PumpBTC introduces a yield mechanism for BTC, addressing the lack of native interest-bearing opportunities for BTC in DeFi.
The protocol does not custody user assets directly. Instead, it partners with custodians like Cobo and Coincover to hold BTC on the native chain and stake on behalf of users via Babylon, thereby avoiding bridge risks and liquidity fragmentation. Currently, PumpBTC supports BSC and Ethereum, with plans to expand to Berachain, Base, and other chains.
The project has integrated with over 70 other projects and completed a $10 million seed round in October 2024, with participation from SevenX, Mirana, Mantle, and others. Overall, PumpBTC occupies a structurally significant position in the BTCFi narrative, with its growth prospects closely tied to the development of the Babylon mainnet.
Project Highlights
Establishing a Native Yield Path for BTC
PumpBTC builds a bridge between BTC derivatives and Babylon staking, allowing assets like BTCB and WBTC to maintain on-chain liquidity while earning native yield from the Babylon protocol. Compared to the passive use of BTC in traditional DeFi, this model introduces an interest-bearing mechanism similar to Ethereum's LSTs, potentially forming a foundational, stable yield path within BTCFi.
Staking Architecture Without Bridge Dependency
Most BTC DeFi applications rely on cross-chain bridges, locking BTC and issuing wrapped assets on target chains, which introduces significant systemic risk. PumpBTC avoids this by collaborating with custodians like Cobo and Coincover to hold BTC directly on the mainnet and stake it via Babylon on behalf of users. This non-bridged approach mitigates common bridge-related security issues and reduces asset fragmentation and liquidity silos.
Scalable Liquid Token System
The $pumpBTC token received after staking BTCB/WBTC is a transferable liquid token that can be used across chains and in DeFi scenarios such as lending and liquidity mining. Currently deployed on BSC and Ethereum, the protocol plans to expand to Berachain, Base, Scroll, and more, offering strong horizontal scalability and a unified yield entry point for BTC across multi-chain ecosystems.
Stable Early Performance and Ecosystem Integration
Since the launch of its mainnet, PumpBTC has seen a steady increase in total staked volume and has integrated with over 70 projects across DeFi, infrastructure, wallets, and other verticals. The project completed a $10 million seed round in October 2024, with backing from SevenX, Mirana, Mantle, and others, positioning it ahead of peers in terms of capital support and ecosystem rollout.
Market Valuation Outlook
PUMP is the liquid staking asset for BTC within the Babylon ecosystem. By staking BTCB, WBTC, and other derivatives, users mint $pumpBTC and earn native staking rewards from Babylon. Its structure is similar to Lido (LDO), Rocket Pool (RPL), and ssv.network (SSV) in the Ethereum ecosystem, combining "liquid staking + infrastructure" as a core narrative. As BTCFi is still in its early stages, PUMP, as a foundational module, is expected to be revalued as TVL grows and the ecosystem matures.
Currently, PUMP is priced at $0.0465 with a circulating supply of 285 million tokens, giving it a market cap of approximately $13.26 million. If its valuation reaches levels comparable to other LSD projects, there remains significant upside potential in token price.
Tokenomics
PUMP has a total supply of 1 billion tokens, with an initial circulating supply of 28.5%.
Token distribution is as follows:
Community & Ecosystem: 38% (6% unlocked at TGE, 32% linearly vested over 4 years)
Initial Claim: 9%, unlocked at TGE
Marketing: 5%, unlocked at TGE
Liquidity: 3.5%, unlocked at TGE
Contributors: 19.5%, 1-year lockup followed by 36-month linear vesting
Investors: 20%, 1-year lockup followed by 36-month linear vesting
IDO: 5%, unlocked at TGE
Token Utility:
PUMP serves multiple purposes within the PumpBTC ecosystem, including governance rights, airdrop boosts, fee discounts, and staking rewards.
Additionally, the token burn mechanism allocates:
30% of protocol revenue for PUMP buyback and burn
70% distributed to vePUMP holders
Team & Funding
Team:
PumpBTC is developed by a team of seasoned professionals from DeFi, cross-chain, and asset custody sectors. Core members hail from Babylon, Cobo, Coincover, and various early EVM ecosystem projects.
- Babylon supports the technical architecture, focusing on BTC asset integration with PoS consensus
- Security architecture is provided by Cobo MPC and Coincover, both with compliant custody credentials
- The marketing and ecosystem team has experience in CeFi and on-chain integrations, having led multiple EVM chain integrations, NFT campaigns, and community airdrop initiatives
Funding:
PumpBTC has completed a $10 million seed round focused on BTCFi and multi-chain infrastructure.
On October 29, 2024, PumpBTC announced the close of its $10 million seed round led by SevenX Ventures and Mirana Ventures.
Other participants include UTXO Management, Mantle Ecosystem Fund, Arcane Group, and more.
Potential Risks
PumpBTC’s yield is derived from the Babylon protocol. If Babylon’s mainnet rollout is delayed or staking participation is below expectations, it could negatively impact $pumpBTC’s native yield, reducing staking appeal and token demand.
According to the disclosed tokenomics, both investor and contributor allocations are subject to a 1-year lockup followed by 36-month linear vesting. The community ecosystem allocation will be released over 4 years, which is relatively moderate. However, the initial airdrop allocation is as high as 9%, which may cause early market selling pressure. The actual incentive effect will depend on ecosystem development.
Official Links
Website: https://mainnet.pumpbtc.xyz/
Twitter: https://x.com/Pumpbtcxyz
Discord: https://discord.com/invite/pumpbtc
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
SEC says liquid staking and tokens are NOT securities; no registration needed
Share link:In this post: The SEC clarified that certain liquid staking activities in cryptocurrency do not qualify as securities offerings, providing clearer guidance on digital asset regulation. Under SEC Chair Paul Atkins, the agency is adopting a more proactive approach to cryptocurrency regulation, away from the previous “regulation by enforcement” regime. While many now praise the SEC under Atkins for its pro-crypto stance, the agency is effectively divided, with one faction in support of Gary Gensler
OpenAI releases GPT-OSS, its first open-source AI model
Share link:In this post: OpenAI released two open-weight models, gpt-oss-120b and gpt-oss-20b, for public use. The models are downloadable under Apache 2.0 and run on platforms like GitHub, Hugging Face, and LM Studio. OpenAI filtered sensitive data and tested against malicious fine-tuning before release.
New Zealand jobless rate hits 5-year high as economic slowdown deepens
Share link:In this post: New Zealand’s jobless rate rose from 5.1% in Q1 to 5.2% in Q2 2025, marking the highest level since Q3 2020. Total employment declined by 0.1% quarter-on-quarter, matching forecasts, and by 0.9% compared to last year’s quarter. Despite the annual slowdown, wages rose 0.6% over the quarter, and average hourly earnings jumped 1.9%.

Trending news
MoreCrypto prices
More








