Ether.fi Maintains $5 Billion TVL Amid Decline in Restaking Popularity
The restaking sector in crypto, once thriving, has seen a decline in total value locked (TVL) as interest wanes. Despite this, Ether.fi remains a leader in the market, utilizing liquid staking tokens (LSTs) to generate yield within the DeFi ecosystem.
Ether.fi's Market Position
- Ether.fi holds approximately 2.58 million staked ETH, significantly outpacing its closest competitor, Renzo, with around 380,000 ETH.
- Current TVL for Ether.fi is about $5 billion, down from a peak of $9.4 billion due to ETH price fluctuations rather than user withdrawals.
- Renzo's TVL has decreased by over 60%, dropping from 1 million ETH to 378,000 ETH since July.
- Ether.fi maintains close communication with users, claiming familiarity with half of its TVL holders.
Transition to Neobank
- Ether.fi aims to evolve from a restaking protocol to a neobank, competing with platforms like Revolut.
- The company plans to launch an integrated mobile app featuring Ether.fi stake, an AI-driven yield generator, and a cash wallet with a credit card.
- A "Cash" Visa card was launched on the Scroll network in September, expected to drive future revenue.
- Ether.fi intends to offer services in the U.S. and apply for licenses in the EU and Cayman Islands.
Market Challenges
- Ethereum faces negative sentiment amid competition from faster blockchains like Solana.
- ETH has declined by 40% over the past year, currently trading around $1,965, while Solana's value has decreased by 25%, now at $131.
- Criticism of Ethereum’s roadmap is attributed to rival ecosystems actively promoting their narratives.