Puffer (PUFFER) Price Prediction

Deep Dive

1. Institutional Restaking Momentum (Mixed Impact)

Overview: ETHZilla’s $47M ETH deployment into Puffer (Sept 25, 2025) follows a $100M EtherFi bet, aiming to capture restaking yields. Puffer’s UniFi AVS now secures $2.4B in ETH, per Bitget, but TVL remains 90% below its 2024 peak.

What this means: Institutional inflows could stabilize PUFFER demand via pufETH adoption, but concentrated exits (e.g., ETHZilla’s 10,600 ETH stake) risk liquidity crunches. PUFFER’s 38% price drop since August aligns with broader LRT sector underperformance.

2. vePUFFER Governance Launch (Bullish Impact)

Overview: Puffer’s vePUFFER mechanism (live since Oct 2024) lets users stake PUFFER for NFTs with accruing voting power, bypassing fixed lockups. A planned vlPUFFER system (Aug 2025) aims to deepen governance participation.

What this means: Flexible staking could reduce sell pressure vs. traditional lockup models. However, only 17.6% of PUFFER’s 1B supply is circulating, with 26% investor tokens unlocking through 2026 – a structural overhang.

3. Security & Competitive Risks (Bearish Impact)

Overview: Puffer paused pufETH withdrawals after an August 2025 breach (Binance). Meanwhile, UniFi AVS competes with EigenLayer’s 40% restaking dominance.

What this means: Recurring security issues could deter ETH validators – critical for Puffer’s 2 ETH bond model. While UniFi’s preconfirmations solve Ethereum’s 12s latency, adoption hinges on rollups accepting revenue-sharing terms.

Conclusion

PUFFER’s trajectory depends on balancing institutional inflows against vesting unlocks and restaking yield sustainability. The Oct 2025 vePUFFER governance votes and ETHZilla’s yield performance will be pivotal. Can Puffer convert its AVS tech edge into sticky validator participation before competitors replicate its model?