Ether.Fi, known for its status as the largest liquid restaking protocol, witnessed a notable 20% drop in the value of its governance token, ETHFI, following its debut. Initially priced at $4.13, the token’s value decreased to $3.60 on Binance, reflecting a challenging start despite significant anticipation.
Token Distribution and Launchpad Staking
The launch involved an airdrop and a Binance Launchpad round, with 55.76% of ETHFI’s supply allocated to core contributors and investors. Binance Launchpad stakers, who had over $12 billion staked, received 20 million tokens from the distribution, illustrating the protocol’s strategy to reward its supporters. The first 45 minutes of trading saw a volume of over $118 million, highlighting the market’s initial interest.
Market Response and Supply Details
Following the launch, ETHFI’s market response mirrored the trend of other recently listed tokens on Binance’s launchpad, which also experienced post-release slumps. The token’s fully diluted value (FDV) adjusted to $3.6 billion, in line with its trading price. With a max supply capped at one billion tokens, the distribution plan includes significant allocations for both Binance Launchpad participants and a two-season airdrop schedule.
Investor and Contributor Allocations
Investors are set to receive 32.5% of the token’s total supply over a two-year vesting period, while core contributors have been allocated 23.26% over three years. The initial circulating supply of ETHFI stands at 115.2 million tokens, setting the stage for future market dynamics as more tokens enter circulation.
Ether.Fi’s Growing TVL and Restaking Strategy
Despite the initial price drop, Ether.Fi’s total value locked (TVL) has impressively surged by 117% over the last 30 days, with total deposits nearing $3 billion. This growth underscores the platform’s appeal in the restaking domain, where ether (ETH) stakers can generate additional yield through a liquid restaking token (LRT) and loyalty points convertible into token airdrops.
As Ether.Fi navigates its early market presence, the restaking protocol’s strategic initiatives and the broader community’s engagement will be critical in shaping its trajectory in the DeFi landscape.
