ETHFI Surges on Ether.fi Liquid Staking Growth and Buyback Program, Outperforming Crypto Market

Published: 2025-05-27 18:31:51 |

ETHFI, the native token of the Ethereum-based liquid staking protocol ether.fi, saw significant gains—over 300% since April and a 21% surge to two-week highs, notably outpacing broader crypto market leaders like ETH and BTC. Key drivers were increased protocol revenue, sharp protocol fee growth, and the introduction of a token buyback program. The ether.fi Foundation completed substantial weekly buybacks, most recently purchasing 206,000 ETHFI tokens with 105 ETH (~$267,000) on May 24, 2025, using withdrawal fee revenues. Repurchased tokens are distributed to stakers, boosting appeal for holders. Ether.fi’s platform reported $2.4 million in April revenue, with DeFiLlama citing $179 million in annualized fees and $24 million in annualized revenue, while TVL rebounded to $6.8 billion, ranking it fourth among DeFi protocols. The protocol’s success has been further amplified by Ethereum-related positive sentiment, as highlighted by SharpLink Gaming’s $425 million ETH acquisition. Though ETHFI remains below its March all-time high of $8.57, it has rallied 263% from its $0.40 April lows. Technical and fundamental indicators point to ongoing bullish momentum, with analysts eyeing another leg up if current trends persist, but a drop below the $1.13 support could reverse this outlook. For traders, ETHFI emerges as a standout altcoin, buoyed by capital inflows, sustained buybacks, growing TVL, and strong network sentiment.

Bullish

ETHFI’s price surge is fueled by strong protocol fundamentals, such as rising revenues, aggressive token buybacks, and rapidly increasing total value locked (TVL) on the ether.fi platform. The regular repurchase and redistribution of ETHFI tokens to stakers boost demand and supply scarcity, further reinforcing bullish sentiment. Positive external events, like large-scale ETH purchases, amplify confidence in both ether.fi and the broader Ethereum ecosystem. Such structural capital inflows and programmatic token management have previously resulted in outperformance for altcoins in similar situations, and strong technical indicators point to further upside potential as long as key support levels remain intact. This positions ETHFI as a promising trade in the short and medium term.