Project Purpose and Fundamentals
EtherFi ETHFI is a decentralized Ethereum staking platform with a twist: unlike other staking services, it lets users keep full control of their own private keys. In simpler terms, when you stake ETH through EtherFi, you don’t hand over your coins completely – you maintain custody while a third-party node operator does the technical work. In return for staking, users receive eETH, a liquid staking token that represents their staked ETH.
This token can be traded or used in DeFi apps, giving stakers flexibility to earn additional yield. EtherFi also boosts rewards by “restaking” ETH into EigenLayer (an extra network) to earn more income. Overall, the project’s goal is to provide a secure, non-custodial way to stake ETH and maximize rewards, without over-complicating things for users. Recently, the team even expanded into more consumer-friendly services (like a crypto-linked cash card) to make using EtherFi feel as easy as a regular fintech app.
Source | Ether.fi
Key Features of EtherFi:
- Non-Custodial Staking: Users stake ETH but keep control of their keys (meaning they hold the withdrawal credentials). This reduces risk because you’re not fully handing assets to a third party.
- Liquid Staking Token (eETH): When you stake, you mint eETH, which you can trade or use in DeFi instead of leaving funds locked. This provides liquidity and extra earning opportunities while your ETH is staked.
- Restaking for Extra Yield: EtherFi automatically restakes your ETH in EigenLayer to perform additional network tasks, which can increase staking returns. This is essentially stacking multiple reward streams on the same ETH.
- Ethereum Aligned: The protocol is built to be decentralized and “Ethereum-friendly.” It even mints NFTs for each validator (advanced users can utilize these) and plans to integrate with various DeFi platforms to expand utility of staked ETH.
TVL and Adoption
EtherFi has grown to become one of the largest ETH staking platforms in the crypto space. As no, it held roughly 2.7 million ETH in total value locked (TVL) – about6.1 billion USDT worth of ETH. This is a near record high for the project and signifies strong adoption by ETH holders. To put it in perspective, EtherFi’s TVL is on par with top decentralized finance platforms, meaning a lot of people trust it with their ETH. Even as the initial hype around “restaking” cooled off industry-wide, EtherFi managed to retain and grow its deposits (where some competitors saw large outflows).
Source | DefiLlama
The team’s strategy to bundle staking with user-friendly features – for example, launching an app that lets users spend or save with a linked crypto card – may be helping attract and keep users. In short, EtherFi’s fundamental usage looks strong, with billions in ETH secured on the platform, reflecting confidence in its model.
Source | Ether.fi
Token Price Performance (Last Month)
The ETHFI token has experienced notable volatility but showed some strength in April 2025. Early-to-mid April, ahead of major token unlocks, the price dipped to around 0.42-0.44 USDT per token. However, by late April the price rebounded significantly – climbing to roughly 0.60 USDT and even briefly above 0.60 USDT at times. In fact, on April 26 the token traded as high as about 0.63 USDT, currently sitting above 0.7 USDT.
This surge toward the end of the month suggests that the market absorbed the new token supply better than expected. For context, EtherFi initially launched its token in March 2024 around the 3.5 USDT range during its exchange debut and airdrop, so today’s ~0.5–0.7 price is much lower than those early highs.
Source | Tradingview
That decline over the past year isn’t unique to EtherFi – many crypto tokens saw sell-offs in 2024 – but it does underline that ETHFI is very volatile. Recently specifically, the token’s price swung from lows in the low 0.40s to highs 0.70s within weeks, which can be jarring for investors.
This volatility may partly reflect traders positioning around news and unlock events, as well as the broader crypto market (Ethereum itself rose in April, which likely helped ETHFI). Overall, last month ETHFI trended upward from its mid-month low, ending April stronger than it began, though it remains far below its launch-day value.
Token Supply Unlocks and Emissions
One big factor weighing on ETHFI’s price is the ongoing token unlocks. EtherFi’s tokenomics included allocations for early investors and team members that were locked up for the first year. Those lockups have started to unlock in substantial amounts.
Source | Coinmarketcap
In mid-April 2025 (around the project’s one-year mark since launch), the first large batch of investor and team tokens became available for release. Going forward, every month new tokens enter circulation as part of the vesting schedule.
For example, around May 18, 2025, about 26.1 million investor tokens (roughly 8.04% of the total supply) are scheduled to unlock, along with about 9.7 million team tokens (around 4.17% of total supply). These are significant numbers – together over 35 million ETHFI (over 12% of the 1 billion max supply) could hit the market in a single month.
The investor unlocks of this size will occur monthly for about a year, while team tokens will continue vesting monthly for two years. Such heavy token emissions naturally create selling pressure as some early backers may sell portions of their unlocked tokens. In April’s case, anticipation of the first unlock likely contributed to the mid-month price dip.
This inflationary supply is an important risk: even if the EtherFi project itself is doing well, a rapidly increasing circulating supply can hold back price appreciation and even push the price down, unless there is equally strong new demand to absorb it.
Investors should be aware that ETHFI’s supply is growing and will continue to do so due to these vesting unlocks. It’s wise to monitor the schedule of upcoming unlocks (which EtherFi has transparently published) and understand that these are part of the token’s design.
Market Activity and Risks
As of early May 2025, about 50 million USDT of ETHFI was open in futures contracts on exchanges. This means many traders are using leverage, which can lead to short-term swings.
For instance, if a lot of traders were betting against the token (shorting it) ahead of the April unlock, the unexpected price rebound later in the month may have forced some of those shorts to buy back tokens to cut their losses – a classic short squeeze scenario. This appears to be what happened: the price jump from ~0.43 to ~0.63 within days after the unlock suggests that fears of a crash didn’t materialize, and instead late short-sellers got caught off guard.
Such dynamics make the token’s price movements hard to predict in the short term. From an investor perspective, EtherFi’s fundamentals are promising, but the token carries risks. On the positive side, the project has real traction (massive TVL and a unique value proposition in the Ethereum staking space).
The EtherFi protocol generates revenue (from staking fees and related services) and the team is expanding the ecosystem, which could eventually benefit token holders if value flows back to ETHFI.
However, key concerns include:
High Token Supply Growth
The continual unlocks mean the ETHFI supply will roughly double over the next year, which could dilute value if demand doesn’t keep up.
Price Volatility
As seen last month, prices can swing wildly in a short time. This volatility can be due to market sentiment, speculative trading, or overall crypto market conditions. It’s important not to chase hype or assume prices will only go up; they can just as easily swing down.
Execution and Adoption Risks
EtherFi’s new initiatives (like the neobank-style app and cross-chain integrations) are ambitious. While they offer upside if successful, there’s always a chance plans don’t fully materialize or competitors emerge. That said, the team’s active development is generally a good sign.
Bottom Line
EtherFi is a forward-looking project making Ethereum staking more accessible and rewarding. With billions in ETH staked, it’s earned user trust and continues to innovate. However, the ETHFI token comes with clear risks. Heavy unlocks and market speculation have made the price volatile. Over the past month, we’ve seen both strong rallies and sharp pullbacks — typical for early-stage tokens in evolving narratives.
Investors should recognize EtherFi’s strong fundamentals, but also understand that ETHFI is a high-risk, high-volatility asset. It may suit long-term believers more than short-term traders. Know the risks, size your positions wisely, and don’t invest what you can’t afford to lose.
This article is for educational purposes only and does not constitute financial advice. Always do your own research before investing. For more crypto insights, guides, and updates, visit blog.millionero.com, and trade securely at Millionero.