The total locked value exceeds 12.8 billion USD, launching a crypto credit card: Can ether.fi continue to lead the restaking market?

Recently, the Ethereum restaking protocol ether.fi has attracted widespread attention in the cryptocurrency market. Since its launch on major exchanges on March 18, ether.fi has quickly captured the interest of many investors. After opening, the price surged to $8.66, then retreated to around $3, but within less than two weeks, the price rose again, demonstrating strong growth momentum. As of May 25, the total value locked (TVL) in Ethereum liquidity restaking protocols has exceeded $12.8 billion, with ether.fi Stake's TVL increasing by 24.41% in the last 7 days, further solidifying its leadership position in the restaking sector.
Recent data shows that ether.fi's price has experienced some fluctuations within 24 hours, ranging from $4.91 to $5.37, ultimately closing at $5.13, up 2.7% from the previous day. This significant market performance reflects investors' confidence and interest in ether.fi.
Additionally, on May 24, ether.fi announced the launch of a cryptocurrency credit card called Cash, aimed at helping users directly use their DeFi assets for daily spending without the need for off-ramp operations. Cash is expected to be launched for consumers in September, but due to regulatory reasons, it may not be available in certain major markets, including the United States. Ether.fi's founder, Silagadze, stated that although Cash is primarily aimed at crypto-native users initially, its emergence may attract more people to participate in the crypto space.
These developments at ether.fi not only showcase its innovations in technology and the market but also reflect its flexibility and foresight in responding to market demands. So, can ether.fi continue to maintain its leading position in the fierce competition? This article will explore ether.fi's recent developments and its future prospects in detail.

Introduction to the ether.fi Platform: A Non-Custodial Staking Protocol on Ethereum with Innovations in Technology and Market

ether.fi is a non-custodial staking protocol built on Ethereum, founded by Mike Silagadze and launched in 2023. Unlike other liquid staking protocols, ether.fi allows participants to retain control of their keys while staking tokens and enables them to exit validators at any time to reclaim their ETH. This design significantly reduces the counterparty risk faced by stakers, as they do not need to hand over their keys to a third party.

Product Features and Technical Characteristics

The core advantage of ether.fi lies in the fact that stakers can generate and hold their own staking ETH keys, rather than relying on node operators. This design ensures that stakers have complete control over their assets, making the staking process more secure and transparent. To enhance the security and liquidity of staking, ether.fi mints an NFT for each validator launched through the protocol. These NFTs not only represent ownership of the staked assets but also grant holders certain control rights.
In terms of technical implementation, ether.fi employs decentralized validator technology (DVT), allowing multiple independent validators to jointly manage a validation node, thereby dispersing risk and increasing the network's resistance to attacks. This approach enhances the decentralization of the Ethereum network, making it more robust and reliable. Furthermore, ether.fi achieves the separation of withdrawal keys and validation keys in staking delegation through key management technology, further optimizing the security of ETH staking services.
The total rewards from staking in ether.fi are distributed among stakers, node operators, and the protocol, at 90%, 5%, and 5%, respectively. Users can earn investment returns by depositing funds into ether.fi and receiving staking rewards (supply-side fees), while also gaining ether.fi loyalty points and restaking rewards (including EigenLayer points).

Financing and Market Response

ether.fi completed a $5.3 million financing round on February 2, 2023, led by North Island Ventures, Chapter One, and Node Capital, with participation from BitMex founder Arthur Hayes. Additionally, ether.fi raised $23 million in February this year, supported by 95 investment institutions and individual investors, including Amber Group, BanklessVC, and OKX Ventures.
Since its launch, ether.fi has performed impressively, attracting widespread attention. After opening, the price surged to $8.66, and although it later retreated, its growth momentum remains strong. As of May 25, the total value locked (TVL) in Ethereum liquidity restaking protocols has exceeded $12.8 billion, with ether.fi Stake's TVL increasing by 24.41% in the last 7 days. This significant market performance reflects investors' confidence and interest in ether.fi.
Through these innovations and developments, ether.fi demonstrates its strong potential in technology and the market. How it continues to maintain its leading position in the future is worth our ongoing attention.

ether.fi Cash: A New Experience from Staking to Spending

ether.fi Cash is the latest product launched by ether.fi, aimed at providing users with a comprehensive solution that combines a mobile wallet and a Visa credit card. This card allows users to borrow USDC using ether.fi assets and also exchange them for USDC for instant settlement. This flexible option enables users to choose the best payment method according to their needs when using ether.fi Cash.
The advantage of using ether.fi Cash also lies in the fact that users can choose to repay their credit card bills using their staking and liquidity rewards. This means that users can not only spend globally but also pay their bills with the earnings from staking, thus achieving a new type of financial management model.
By registering for ether.fi Cash, users can receive 1,000 ether.fi cash points and join the waiting list. This credit card is the third part of the ether.fi product trilogy—ether.fi Stake, ether.fi Liquid, and ether.fi Cash. Through these integrated products, ether.fi helps users save, invest, and spend cryptocurrency, providing a more convenient and comprehensive financial service experience.

Product Trilogy

ether.fi's mission is to make it easy for ordinary people to use DeFi. Through the product combination of ether.fi Stake, ether.fi Liquid, and ether.fi Cash, ether.fi is gradually achieving this goal. These products not only simplify users' access to DeFi but also provide integrated services from staking to investing to spending, allowing users to fully enjoy the convenience brought by cryptocurrency.

Market Background and Demand

In the current DeFi market, many products are complex and specialized, making it difficult for ordinary users to understand and use them. ether.fi lowers the barriers to using DeFi through a user-friendly interface and integrated products, allowing more people to participate and benefit. The launch of ether.fi Cash is aimed at meeting the demand for users to use crypto assets for daily spending, eliminating the complexities and inconveniences of traditional financial systems.
ether.fi Cash, as a true credit card, differs from traditional Visa debit cards in that it supports not only daily spending but also allows users to repay bills through staking and liquidity rewards. Ether.fi founder Mike Silagadze stated, "Our mission is to build an integrated application suite that allows ordinary people to truly use DeFi. Cash is your spending account, and the dream is that you never have to off-ramp from the blockchain."
The launch of ether.fi Cash not only marks another significant step in ether.fi's product innovation but also showcases its efforts in meeting user needs and enhancing user experience. With the release of ether.fi Cash, ether.fi is gradually realizing its vision of making it easy for ordinary people to navigate DeFi, providing users with more convenient and comprehensive cryptocurrency financial services.

The Explosive Growth of ether.fi: Can It Withstand the Risks of the Restaking Market?

In less than six months, ether.fi's total value locked (TVL) has rapidly grown from $100 million at the beginning of the year to over $4 billion, a phenomenon that has left founder Mike Silagadze calling it "crazy." In a recent interview, Silagadze stated that the pace of development in the restaking market has exceeded everyone's expectations, including his own. For a small team of only 12 people, such growth is both exciting and brings tremendous pressure, and they plan to double the team size in the next six months.
After spending over a decade in the educational technology field, Mike Silagadze transitioned into the Web3 space, which was not an abrupt change but a gradual and natural process. From buying Bitcoin for the first time in 2011, to starting a crypto investment fund after selling his first company in 2021, and then founding ether.fi, he has accumulated rich entrepreneurial and investment experience. Silagadze pointed out that while the current Web3 space is filled with a lot of money pouring in, it is also "much more interesting."
The rapid growth of the restaking market, while exciting, also comes with significant risks. Silagadze believes that most of the current risks are related to the speculation and financialization of restaking assets (such as liquid restaking tokens). He noted that for poorly designed liquid restaking protocols, when tokens decouple or become illiquid, users can suffer severe losses. In the future, if there are many restaking services backed by poorly designed or unsafe restaking protocols, it could lead to cascading systemic risks. Therefore, users need to be very cautious when evaluating restaking projects and choose more robust protocols.
Looking ahead, Silagadze emphasized that ether.fi will continue to focus on the Ethereum ecosystem and will launch more integrated products aimed at ordinary users in the future. Ether.fi's goal is to simplify the use of DeFi, allowing ordinary people to easily navigate cryptocurrency. Despite ether.fi's significant growth and achievements, the road ahead remains filled with uncertainties. Silagadze and his team need to maintain innovation and rapid development while continuously monitoring market risks to ensure the safety of user assets. This uncertainty is also part of the crypto space, and ether.fi will continue to explore and move forward in this rapidly changing industry.