A Year of Shifts in the Crypto Landscape
Just a year ago, the restaking sector in cryptocurrency was experiencing an exhilarating boom, with projects like EigenLayer capturing the attention of investors and enthusiasts alike. However, as we move into mid-2025, the landscape has shifted dramatically. The total value locked (TVL) in restaking has seen a decline, and the excitement that once surrounded point farms has largely dissipated.
Amidst this downturn, Ether.fi, a leading player in the market, has managed to maintain its footing. By offering users the opportunity to generate yield through liquid staking tokens (LSTs) that can be utilized within the decentralized finance (DeFi) ecosystem, Ether.fi has remained a steadfast choice for many.
Ambitious Plans to Evolve
Looking ahead, Ether.fi is not resting on its laurels. The company has ambitious plans to evolve into a neobank, catering to the needs of both crypto companies and individual users.
Ether.fi’s Market Leadership
Capitalizing on Early Opportunities
Founded in the Cayman Islands, Ether.fi has positioned itself as a pioneer in the liquid restaking arena. Early on, the platform launched a lucrative points farm that rewarded users with points convertible into future token airdrops. This strategy proved effective, resulting in a remarkable increase in staked ETH. Over just ten weeks at the beginning of 2024, staked ETH surged from 45,000 to an impressive 808,000 ETH.
Today, Ether.fi boasts approximately 2.58 million staked ETH, far surpassing its nearest competitor, Renzo, which holds around 380,000 ETH. In terms of dollar value, Ether.fi currently enjoys a TVL of about $5 billion. While this figure has decreased from a December peak of $9.4 billion, the decline is primarily attributed to the falling price of ETH rather than significant withdrawals.
User Engagement as a Strategy
Ether.fi actively engages with its user base to foster loyalty and retention. “We know probably half the TVL,” stated Silagadze, indicating the company’s commitment to maintaining open lines of communication with its stakeholders. In contrast, Renzo has struggled, experiencing over 60% of its ETH being withdrawn since July, leading to a drop in TVL from 1 million ETH to 378,000 ETH.
Transition from Restaking to Neobanking
A Broader Vision for the Future
For Silagadze, the restaking product serves as a vehicle for onboarding users and capital. The ultimate ambition, however, is to develop a comprehensive neobank that rivals established financial services like Revolut. “Staking for us was really just a way of building TVL and getting a user base,” Silagadze explained. “The ultimate goal is to create an integrated product suite that allows users to fully off-ramp from their traditional banking institutions and operate on a crypto-native platform.”
Innovative Offerings on the Horizon
In September, Ether.fi introduced a “Cash” Visa card on the Scroll network, which Silagadze believes could become a significant revenue driver. The term “neobank” has gained traction in the crypto world, with other platforms like Nexo rebranding themselves and Dakota launching a stealth crypto banking app. Even EOS has shifted its focus towards Web3 banking.
Ether.fi plans to integrate its services into a mobile app that will include three key products: Ether.fi stake (the staking protocol), Ether.fi liquid (an AI-driven DeFi strategy manager), and the Ether.fi cash wallet and credit card.
Navigating Regulatory Challenges
Staking firms eyeing the U.S. market have faced hurdles due to an unclear regulatory landscape. However, Ether.fi is optimistic about the potential for the U.S. market, especially with a crypto-friendly administration in place. “We just got a legal opinion that we’re cool to do that,” Silagadze mentioned, referring to their plans to launch staking and cash products for U.S. users. The company is also pursuing licenses to operate in the European Union and the Cayman Islands.
Ethereum’s Evolving Sentiment
A Shift in Market Perception
Ethereum was once the star of the 2017 bull market and the ICO boom, solidifying its position as the leading smart contract chain during the DeFi and NFT explosion of 2020-2022. However, the current cycle has brought criticism regarding Ethereum’s prolonged development roadmap, as attention shifts to faster blockchains like Solana and the rise of memecoins.
Currently, Ether is trading around $1,965, reflecting a 40% reduction in value over the past year, while Solana stands at $131 with a more modest 25% decline.
Addressing Misinformation in the Market
Silagadze pointed out that some of the negative sentiment surrounding Ethereum is fueled by competing ecosystems. “The Solana folks are out there every single day talking to investors and allocators and media and just spreading misinformation about Ether,” he noted. He emphasized that while the arguments against Ethereum may lack coherence, they still manage to influence public perception.
In conclusion, while the landscape of crypto continues to evolve, Ether.fi’s strategic positioning and user engagement initiatives are helping it to not only retain its TVL but also prepare for ambitious future endeavors in the realm of crypto banking.
