Ether.fi, Binance's latest Launchpool project and a liquid restaking protocol, hit an all-time high today as the restaking craze continues to attract cryptocurrency investors.
The token, which represents the voting power in the decision-making process in the management of the protocol, rose by up to 50% to $ 7.2 in the last 24 hours.
This rise allowed ETHFI to recover from the price decline that followed its decline on March 18. After initially rising to $5 on Binance, the altcoin fell below $3 in the following days.
Liquid restaking protocols like Ether.Fi are designed to reuse Ethereum's proof-of-stake blockchain to secure other networks through the original restaking platform, EigenLayer.
According to the data, Ether.fi is the leader in the field of liquid restaking. Its total value locked (TVL) has jumped from $100 million to over $3 billion since the beginning of the year, according to DefiLlama data.
Ignas, a well-known DeFi analyst, noted that the strong price performance of the protocol's governance token, ETHFI, could boost the valuations of other liquid restaking tokens (LRT) to be released in the future. “The higher the ETHFI price, the higher the relative valuations of all other LRT governance tokens will be,” Ignas said.
*This is not investment advice.
