The decentralized finance (DeFi) landscape is witnessing a powerful resurgence in investor confidence, led by the remarkable recovery of ETHFI, the governance token of Ether.fi, a leading liquid restaking protocol. After enduring a sharp post-airdrop correction, ETHFI has surged to new all-time highs—briefly breaking the $8.60 mark—signaling renewed optimism in the broader restaking ecosystem.
This rally not only marks a dramatic turnaround for ETHFI but also underscores the growing momentum behind EigenLayer-powered restaking, where users can reuse their staked ETH across multiple protocols to amplify yield and security. As market sentiment shifts, ETHFI’s performance is increasingly seen as a bellwether for upcoming LRT (Liquid Restaking Token) projects and their potential airdrop valuations.
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The Rise of Liquid Restaking Protocols
Liquid restaking protocols like Ether.fi are redefining capital efficiency in Ethereum’s staking economy. Traditionally, staked ETH is locked and illiquid—offering passive rewards but limited utility. Restaking changes this by allowing users to stake their ETH, receive a liquid token (like eETH), and then re-stake that token across multiple validation layers, particularly within EigenLayer’s ecosystem.
This innovation unlocks composability in staking: users earn base staking yields from Ethereum, additional rewards from EigenLayer’s activeness incentives, and protocol-specific incentives from restaking platforms themselves.
Among these platforms, Ether.fi has emerged as a clear market leader. According to DefiLlama data, its Total Value Locked (TVL) has skyrocketed from just $100 million at the start of 2025 to over **$3 billion**, reflecting strong user adoption and trust in its non-custodial infrastructure and competitive reward structure.
Other notable players such as Kelp DAO, Puffer Finance, Renzo, and Swell have also attracted significant capital inflows—each amassing hundreds of millions to over $1 billion in TVL—demonstrating the explosive demand for flexible, yield-enhancing staking solutions.
From Airdrop Hype to Sustainable Growth
ETHFI’s journey has been anything but smooth. The token launched via a highly anticipated airdrop on March 18, initially spiking to around $5 on Binance. However, like many crypto airdrops, the initial euphoria quickly faded. Without immediate utility or strong market momentum, the price tumbled below $3 within days—leaving many early participants disillusioned.
But recent developments have reignited interest. The broader restaking narrative has matured, with clearer use cases, improved infrastructure, and increasing institutional curiosity. More importantly, Ether.fi has continued to deliver on its roadmap—enhancing security, expanding partnerships, and boosting user rewards.
Now, with ETHFI reclaiming momentum and surpassing $8.60, it’s not just recovering lost ground—it’s setting new benchmarks.
Why ETHFI’s Rally Matters for the Entire Restaking Ecosystem
The surge in ETHFI’s value isn’t isolated—it has ripple effects across the entire LRT sector. As noted by prominent DeFi analyst Ignas:
"The higher ETHFI goes, the higher the relative valuation of all other LRT governance tokens becomes. The stronger ETHFI performs, the better the expected airdrop outcomes for Swell, Renzo, Puffer, Kelp, and even EigenLayer itself."
This sentiment highlights a critical dynamic in today’s DeFi market: market leaders set pricing precedents. When one major LRT token gains traction, it lifts investor expectations—and valuations—for similar projects still in stealth or pre-airdrop phases.
In essence, ETHFI’s success validates the economic models of competing restaking platforms. It suggests that well-executed protocols with strong communities and real utility can achieve meaningful market caps post-airdrop, encouraging long-term participation rather than short-term farming and dumping.
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Market Performance and Investor Sentiment
As of the latest data from OKX, ETHFI is trading at approximately $7.46—down from its intraday high but still reflecting a 24-hour gain of over 28%. This outpaces both Bitcoin and Ethereum, which saw marginal declines during the same period.
Strong on-chain metrics support this bullish trend:
- Rising holder count and wallet inflows
- Increased staking volume on Ether.fi
- Growing liquidity depth on decentralized exchanges
Moreover, social sentiment has shifted positively across platforms like X (formerly Twitter) and Discord, with increased discussion around staking strategies, tokenomics updates, and speculation about future protocol upgrades.
What’s Next for ETHFI and the Restaking Narrative?
Looking ahead, several catalysts could further propel ETHFI and the broader restaking movement:
- Protocol-owned liquidity initiatives – Similar to Curve Wars 2.0, restaking platforms may begin acquiring ve-token positions to boost their DEX presence.
- Cross-chain expansion – Ether.fi and others may extend their restaking capabilities beyond Ethereum to Layer 2s and appchains.
- New incentive programs – Expect more targeted rewards for long-term stakers, boosting retention and reducing sell pressure.
- Integration with RaaS (Restaking-as-a-Service) – Simplified access for institutions and retail users alike.
Additionally, as EigenLayer continues to roll out new modules and activeness rewards, the value accrual to restaking protocols—and their native tokens—could accelerate.
FAQ: Understanding ETHFI and Restaking
Q: What is ETHFI?
A: ETHFI is the governance token of Ether.fi, a non-custodial liquid restaking protocol that allows users to earn rewards from both Ethereum staking and EigenLayer restaking while retaining liquidity through its eETH token.
Q: Why did ETHFI drop after the airdrop?
A: Like many crypto airdrops, early recipients often sell immediately for profit. Combined with limited initial utility and market-wide consolidation, this led to a price correction. However, sustained protocol growth has helped restore confidence.
Q: How does restaking work?
A: Restaking lets users take their already-staked ETH (or liquid staking tokens) and secure additional networks like EigenLayer. This enables them to earn extra yield while contributing to decentralized security.
Q: Is ETHFI a good investment?
A: While past performance isn’t indicative of future results, ETHFI’s strong TVL growth, active development team, and leadership position in the LRT space make it a closely watched asset. Always conduct your own research before investing.
Q: Will other LRTs benefit from ETHFI’s rise?
A: Yes. As the most established LRT token, ETHFI sets a valuation benchmark. A higher ETHFI price increases perceived value for upcoming tokens like those from Renzo, Swell, or Kelp DAO.
Q: Where can I stake ETH with Ether.fi?
A: You can interact directly with Ether.fi’s platform to stake ETH and receive eETH. For tracking prices and managing assets securely, many users rely on trusted platforms.
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Final Thoughts
ETHFI’s rebound from post-airdrop lows to record highs exemplifies the cyclical nature of crypto markets—and the power of resilient fundamentals. While hype drives initial interest, long-term success depends on execution, adoption, and ecosystem alignment.
With restaking emerging as one of 2025’s most compelling narratives in DeFi, protocols like Ether.fi are not just offering higher yields—they’re building the foundation for a more secure, composable, and efficient blockchain economy.
As investor attention turns toward governance participation and sustainable value accrual, ETHFI stands as both a symbol and a driver of this next evolutionary phase in decentralized finance.