Ether.Fi (ETHFI) token dumps after trading debut

ETHFI, the governance token of liquid restaking protocol Ether.Fi, fell nearly 30% after its market debut.
Ether.Fi’s token listed on major exchanges like Binance and OKX.

The price of ETHFI, the governance token of liquid restaking protocol Ether.Fi, has declined 30% just hours after its market debut.

ETHFI listed on major exchanges, including Binance and OKX, and traded to highs of $5.32. However, with profit taking in full swing, the token’s price has fallen by about 30% to hit lows of $3.30.

According to CoinGecko, Ether.Fi has a market cap of $394 million at the time of writing and a fully diluted valuation (FDV) of $3.4 billion. The token’s circulation supply is 115.2 million ETHFI while total supply is 1 billion ETHFI.

Ether.Fi was seeing trading volumes of $250 million. DeFiLlama data shows total value locked (TVL) at $2.97 billion. That’s slightly down from the peak of $3.13 billion on March 15, 2024.

ETHFI tokenomics

Ether.Fi is a huge protocol in the liquid restaking space and interest and hype around it was huge.

Launching in the Binance Launchpool was one of the biggest in recent listings. After its season 1 airdrop of 6% of total supply, season 2 will introduce 5%. The season 1 airdrop claims window will remain open for 90 days, the platform noted.

While analysts are bullish on the future of Ether.Fi as a project, the one disquieting factor for holders is the project’s tokenomics.

ETHFI token allocations aim to promote long term, deep engagement in key governance decisions toward the continued success of the https://t.co/gbHcksxzp2 protocol.

The ETHFI airdrop will consist of 2 seasons. Season 1 is 6% of the full token supply. Season 2 will get 5% of the… pic.twitter.com/SBOIJQAfOR

— ether.fi (@ether_fi) March 16, 2024

With 1 billion tokens, nearly 56% of that – 55.76% to be precise – will go to private investors and core contributors. Private investors have 32.5% of the ETHFI supply while core team members will have 23.26% of the total supply, according to the project’s tokenomics details.

The post Ether.Fi (ETHFI) token dumps after trading debut appeared first on CoinJournal.

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