Deep Dive
1. Chain Upgrade Momentum (Bullish Impact)
Overview
Persistence is midway through a 4-phase upgrade to Cosmos SDK v0.53.x, expected to conclude by late 2025. The overhaul improves compatibility with Bitcoin via Babylon integration and removes legacy code, reducing technical debt. Phased rollouts (currently in Phase 1) minimize downtime risks.
What this means
Successful execution could attract developers building BTCFi apps, leveraging Bitcoin’s security. Historically, Cosmos chains like Osmosis saw 20-40% price bumps post-major upgrades (Persistence Blog). However, delays or bugs during later phases (e.g., Babylon integration in Phase 4) could dampen sentiment.
2. BTCFi Liquidity Hub Ambitions (Mixed Impact)
Overview
Persistence DEX V2 aims to aggregate fragmented Bitcoin liquidity (wBTC, BTC L2 assets) with near-zero slippage swaps. Over 18,000 users tested the platform in 2025, but mainnet TVL remains low at ~$300K across pools.
What this means
Capturing even 0.1% of Bitcoin’s $2.1T market cap could revalue XPRT, but current traction is modest. The DEX’s success hinges on integrating major BTC L2s like Merlin Chain and BEVM – a work in progress.
3. Incentive Cycles & Tokenomics (Neutral/Bearish)
Overview
August 2025 saw 58,900 stkXPRT (~$1,800) allocated to ATOM/XPRT pool rewards. While this boosted 24h volume by 318%, such programs risk sell pressure if recipients dump rewards.
What this means
Short-term volume spikes (like the $9K KuCoin trading contest) may not sustain price action. XPRT’s 39% 90d drop suggests weak holder conviction despite incentives.
Conclusion
XPRT’s path hinges on executing its BTCFi vision while navigating a bearish macro climate (neutral fear/greed index). The SDK upgrade and DEX adoption are high-reward bets, but thin liquidity and competition (THORChain, Stacks) pose risks. Can Persistence onboard a top-tier Bitcoin L2 partnership by Q4 2025 to accelerate network effects? Monitor upgrade completion timelines and DEX TVL trends.