Ether.fi Retains TVL Amid Restaking Decline, Eyes Neobank Expansion

Ether.fi, a prominent player in the liquid staking space, has managed to retain its total value locked (TVL) despite the waning interest in restaking. A year ago, restaking was a hot topic in the crypto world, with projects like EigenLayer gaining significant attention. However, by mid-2025, the hype around restaking had diminished, and TVL across the sector had decreased.

Ether.fi, based in the Cayman Islands, has maintained its position by offering users the ability to generate yield through liquid staking tokens (LSTs) that can be staked across the decentralized finance (DeFi) ecosystem. The platform's early entry into the liquid restaking space and its lucrative points farm, which rewarded early users with points convertible into a token airdrop, contributed to its success. In a 10-week period at the start of 2024, staked ETH on Ether.fi grew from 45,000 ETH to 808,000 ETH, and currently stands at 2.58 million ETH, significantly ahead of its closest competitor, Renzo, which has around 380,000 ETH.

In dollar terms, Ether.fi has around $5 billion worth of TVL, a decrease from December's high of $9.4 billion, primarily due to the decline in ETH's price rather than significant outflows. Ether.fi's strategy of engaging closely with its users has helped retain its TVL. In contrast, Renzo has seen more than 60% of its ETH withdrawn since last July, with TVL sliding from 1 million ETH to 378,000 ETH.

Ether.fi's ambitions extend beyond restaking. The company aims to become a neobank, offering an integrated product suite that allows users to transition from traditional banking institutions to a crypto-native platform. The platform rolled out a "Cash" Visa card on the Scroll network in September, which is expected to become a main revenue driver. Ether.fi plans to incorporate three products into a soon-to-be-released mobile app: Ether.fi stake, Ether.fi liquid, and the Ether.fi cash wallet and credit card.

Staking firms looking to serve the U.S. market have faced challenges due to the lack of a clear regulatory framework. However, Ether.fi is optimistic that the crypto-friendly administration will facilitate its entry into the U.S. market. The company is also applying for licenses to operate in the European Union and the Cayman Islands.

Ethereum, once the dominant smart contract chain, has faced criticism for its drawn-out roadmap. The market has shifted focus to memecoins and faster blockchains like Solana. Ether is currently trading at around $1,965, having lost 40% of its value over the past 12 months, while Solana is trading at $131, having lost just 25% of its value in the same period. Some of the negative sentiment towards Ethereum is attributed to competing ecosystems spreading misinformation.