Project Purpose and Fundamentals
EtherFi is a decentralized Ethereum staking platform that allows users to retain full control of their private keys while staking ETH. Unlike traditional staking services, EtherFi enables users to maintain custody of their assets while node operators handle the technical aspects.
Key Features of EtherFi:
- Non-Custodial Staking: Users stake ETH but retain control of their private keys, reducing third-party risk.
- Liquid Staking Token (eETH): Stakers receive eETH, a liquid staking token that can be traded or used in DeFi for additional yield.
- Restaking for Extra Yield: EtherFi automatically restakes ETH in EigenLayer to generate additional rewards.
- Ethereum-Aligned: The protocol is designed to be decentralized and integrates with various DeFi platforms.
👉 Learn more about EtherFi's staking model
TVL and Adoption
EtherFi has become one of the largest ETH staking platforms, with approximately 2.7 million ETH (worth $6.1 billion) in Total Value Locked (TVL). This growth reflects strong adoption and trust among ETH holders. The platform's success is attributed to its user-friendly features, such as a crypto-linked cash card, which enhances accessibility.
Token Price Performance (Last Month)
The ETHFI token exhibited significant volatility in April 2025:
- Early April: Prices dipped to $0.42–$0.44.
- Late April: Prices rebounded to $0.60+**, peaking at **$0.63.
- Current Price: Above $0.70.
Despite the upward trend, ETHFI remains far below its initial launch price of $3.50 in March 2024, highlighting its high volatility.
Token Supply Unlocks and Emissions
ETHFI faces ongoing token unlocks, which add selling pressure:
- May 2025: ~35 million ETHFI (12% of max supply) unlocks.
- Monthly Unlocks: Investor and team tokens will continue vesting for the next 1–2 years.
These unlocks could dilute value if demand doesn’t offset the increased supply.
Market Activity and Risks
ETHFI’s futures market shows $50M in open contracts, indicating leveraged trading and potential short-term swings. Key risks include:
High Token Supply Growth
- Circulating supply will double over the next year.
Price Volatility
- Prices can swing rapidly due to market sentiment or speculative trading.
Execution Risks
- Ambitious initiatives (e.g., neobank app) may face delays or competition.
FAQ Section
1. Is EtherFi safe for staking?
Yes. EtherFi’s non-custodial model ensures users retain control of their keys, minimizing third-party risks.
2. What is eETH?
eETH is a liquid staking token representing staked ETH, usable in DeFi for additional yields.
3. How does restaking work?
EtherFi restakes ETH in EigenLayer to perform additional network tasks, boosting rewards.
4. Why is ETHFI volatile?
Heavy token unlocks and speculative trading contribute to price swings.
5. Can I trade eETH?
Yes. eETH is tradeable and can be used in DeFi protocols.
6. What’s EtherFi’s TVL?
As of May 2025, EtherFi’s TVL is $6.1 billion.
Bottom Line
EtherFi is a promising project with strong fundamentals, but the ETHFI token carries high risk due to volatility and token unlocks. Long-term investors should weigh these factors carefully.