Analysis: The restaking 'gold rush' is ebbing, profits of Ethereum's leading protocols have shrunk sharply
1 hours ago
As restaking yields continue to decline and smart contract risks rise, Ethereum’s leading liquid restaking protocol ether.fi is gradually exiting the restaking business and shifting to a "crypto neo-bank" model. Data shows that as of September 8, the restaking sector’s assets under management (AUM) stood at approximately $10.02 billion, generating only around $99,977 in fees over the past week. By contrast, liquid staking protocols manage roughly $51.87 billion in AUM and produced about $27.35 million in fees. Calculated per dollar of assets, fees from liquid staking are roughly 53 times higher than those from restaking. ether.fi CEO Mike Silagadze noted that restaking offers "no meaningful yield opportunities" while exposing users to additional risks, prompting the firm’s exit from the segment. As of August, less than 1% of ether.fi’s assets remained restaked via EigenLayer, with the company expected to fully sever related structural connections by the end of this year. Meanwhile, the five major liquid restaking protocols—Renzo, Kelp, Swell, Puffer Finance, and Bedrock—combined to generate around $953,000 in gross profit in Q2 2026, a sharp decline from the $2.18 million they earned over the prior three quarters. ether.fi has since pivoted its business focus to crypto neo-banking, including offerings such as crypto payment cards, lending markets, yield vaults, and tokenized stocks and metals.
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