Ether.fi – A familiar name in the rest space – undergoes a strategic change because it officially goes to a crypto -native neobank.
From a dominant replenishment platform to an ambitious leader in the decentralized bank, Ether.Fi becomes the limits of the modern challenge.
The transformation of Ether.Fi
In the rehabilitation sector, Ether.fi is one of the best players, holding a market share of 31.4%. The main position belongs to Eigenpie with 46.4%.
Ether.fi recorded nearly 2.6 million ethmossessed on the platform. The current total locked value (TVL) is around 8.34 billion dollars. Going beyond its role as a passive return platform, the project gradually implements a digital banking model. This model aims to become a fully integrated decentralized financial ecosystem, from jalitude and guaranteed loans to daily expenses.
Ether.fi’s new transformation strategy, in addition to diversifying its product offer in a highly competitive space, can also come from a drop in performance. Although the project still has a large market share, this figure has notably decreased compared to its previous peak.
According to Dune data, the project has already organized a monopoly with more than 55% market share in March 2025. However, this figure fell at the current level in less than three months.
The pivot of Ether.fi was not without challenges. Its first product – a non -guardian credit card launched at the end of April – showed modest performance compared to the large scale of the traditional financial market.
In addition, Ether.fi faces fierce competition from Giants like Coinbase, Revolut and Robinhood. These companies already have millions of detail users and well -established financial ecosystems.
A potential problem is the sustainability of the cashback program at 3%. Currently, these awards are subsidized by the Scroll SCR token, which represents 50% of TVL on the scrolling network. However, if the transaction volumes increase rapidly, the cost of maintaining the cashback program could become unbearable. This could force Ether.fi to adjust the cash-back rate or explore other sources of income.
“Despite these challenges, Ether.Fi’s Product Suite is structurally convincing, each offer designed to stimulate demand for others by tight vertical integration. Combined with several tail winds (tradfi companies adding ethn to the balance sheets, and increasing the adoption of stables, the ETH Record entries), the configuration seems promined for accelerated growth in the coming months. ” An X user commented.
Overall, the transformation of Ether.Fi is a clear sign that the DEFI protocols are increasingly convergent with traditional banking models – but in a more decentralized and transparent way. While the capital of traditional institutions is starting to flow on the Ethereum market through vehicles such as Spot ETH ETF, Ether.Fi can be well positioned to mount these favorable winds to increase its influence.
However, maintaining growth dynamics, maintaining user confidence and balancing short -term gains with long -term vision are key challenges for the team behind the project.
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