Ether.fi Exits Restaking Business Amid Sector Profits Collapse

Ether.fi is ending its involvement in the restaking business by cutting ties to EigenLayer. The protocol's documentation shows that less than 1% of its assets were still restaked as of August, and it will remove its withdrawal credentials by the end of this year.

This decision comes after a significant decline in profits for the sector. According to DefiLlama data, the restaking category held $10.02 billion on September 8 but generated only $99,977 in fees over the previous week. In contrast, liquid staking tokens earned roughly 53 times more per dollar secured.

EigenLayer's restaking services never paid enough to fund the second layer of yield promised by Ether.fi. The protocol has chosen to rebuild itself as a crypto neobank, offering users a card that lets them spend against their holdings and borrowing market. Card fees have risen from 17% of monthly revenue in January to 46% in July.

EigenLayer has rebranded as EigenCloud and now markets verifiable computing, with restaked collateral as the layer underneath. Its holdings stand at $5.10 billion, down from $22.06 billion in August 2025.