Ether.Fi token launch hits $360m cap instantly

On Monday, Ether.Fi rolled out its acclaimed ETHFI governance token, producing an airdrop that apparently symbolizes the major factor in ensuring the decentralization of the platform’s liquid staking protocol. During the day, the token was traded at a price range of $3 to $3.50, building up a market capitalization of more than $362 million within such a short period of time. This airdrop strategy will help reward different community members, like participants of the Binance Launchpad rounds and solo stakers on Ether.Fi, and holders of eETH – a main token of Ether.Fi allows users to earn rewards by staking Ethereum and re-staking via EigenLayer.

The announcement occurs amid a heightened mindset over liquid staking, which permits holders to stake their coins while the assets remain liquid. CoinGecko reports that ETHFI’s fully derived value equals $3.4 billion. It is pricing Shido below the Dogecoin-backed meme coin WIF but still above Lido and dYdX as competitors, as shown by the market cap. Ether.Fi is planning to compose the ETHFI tokens total supply at one billion quantity, having 6% for the First Season and 2% for the Binance Launchpad round participants in particular.

In a recent development on March 13, 2024, 120,000 ETH, approximately worth $420.72 million, were moved from an address linked to Justin Sun to Ether.Fi. Sun’s investment set his wallet to claim the 3.45 million ETHFI from the 60 million ETHFI from the first phase of airdrops, according to the team of Ether.Fi, Sun’s tokens have been vested in time brackets to support fairness, sustainable growth, and long-term community stability.

For the distribution strategy part, we assign 23.26% of the total supply to the core contributors and 27.24% to the DAO treasury. Besides, 32.5% of tokens will be staked in a vesting period for 2 years, according to the protocol document.

Ether.Fi co-founder and Chief Growth Officer Rok Kopp acknowledged the trouble-free airdrop distribution. The commentator applauded the site, mentioning that receivers could get their airdrop without problems. The statements of the Kopp resemble the proper performance of the airdrop, which has been not only targeting the friends of Ether.Fi but also has crucially involved Ether.Fi in the liquid staking and decentralized finance (DeFi) sectors.

Recent reports show users have locked $2.876 worth of crypto assets in Ether.Fi’s smart contract and the statistics show 2.876 billion dollars from DefiLlama data. This big figure reflects the trust in the DeFi community and the interest in the Ether.Fi products, thus bringing positive signals for the protocol’s future in the dynamic world of blockchain technologies and digital finance.

Roxanne Williams

Roxanne Williams has recently joined as a market reporter for CryptoNewsZ - the 24/7 crypto news site, where she produces recent stories, technical analysis and price updates on world's leading cryptocurrencies.

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