Ether.fi [ETHFI] has continued with its price recovery. After successfully holding $0.4 support, the altcoin jumped to a local high of $0.44, effectively clearing all recent losses.
At press time, Ether.fi was trading at around $0.43 after rising 11.34% on the daily charts. At the same time, trading volume surged 107%, while market cap climbed 10%, reflecting market participation and capital flows.
What’s behind Ether.fi’s rally? ETHFI’s relative strength was driven by an increased user base and expansion into RWA tokenization. Nearly two weeks ago, Ether.fi allocated $100 million into a new Plume RWA Vault, providing ETHFI users access to institutional-grade RWA yield.
The product introduced RWA exposure to a simple, non-custodial on-chain vault. After Ether.fi announced the investment. ETHFI surged from $0.37 to $0.44. This was later boosted by the integration with the Binance wallet. A week ago, the Binance wallet added a Plume RWA yield vault on nBASIS.
In doing so, ETHFI greatly benefited from the expanded market reach. The altcoin rose from $0.38 to $0.44 between July 8 and 12, before retracing.
ETHFI market demand remains steady In addition to the growing reach of the RWA market, demand for the altcoin has remained steady across the market.
On the derivatives side, the altcoin’s Open Interest (OI) climbed 19% to $74.47 million as of writing. At the same time, the Derivatives Volume surged 93% to $110 million.
Source: CoinGlass With OI and volume rising in tandem, it showed increased speculative activity as traders opened new positions, either shorts or longs. The same demand was observed on the spot side. According to Coinglass data, the altcoin’s Spot Netflow has remained positive for two consecutive days.
Notably, the Spot Netflow was -$82k, a significant drop from -$264k. With the Netflow holding negative, it indicated that buyers are relatively stronger on the spot.
Source: CoinGlass These prevailing market conditions have historically preceded stronger price performance, especially when sustained.
Can ETHFI’s upside hold? Currently, Ether.fi’s upside momentum remains relatively strong, largely driven by established market demand. At the time of writing, the altcoin Momentum Shift Indicator remained positive and was stabilizing at 0.025.
Source: TradingView With this indicator on an upward trajectory, the prevailing trend is particularly strong. At the same time, the MACD has also remained on a rising trend for the past two weeks, further confirming the trend’s strength.
Taken together, these two indicators point towards the extension of the trend. Therefore, if demand holds, Ether.fi will close above $0.45 and eye $0.5. However, if the altcoin fails to hold $0.44, it will likely drop below $0.4, with $0.37 as the critical support.
Final Summary
Ether.fi surged 11%, successfully held $0.4, and jumped to $0.44 amid strong market demand. ETHFI has shown relative strength, as a $100 million investment into RWA seems to be finally paying off.
The broader cryptocurrency market shows early signs of recovery, with Bitcoin (BTC) testing a breakout above its 50-day Exponential Moving Average (EMA) around $65,136. Improving risk appetite has investors turning toward DeFi tokens such as Ondo (ONDO) and Ether.fi (ETHFI) that emerge as best performers over the last 24 hours.
CoinMarketCap’s Fear and Greed Index at 36 on Thursday shows a largely recovering market sentiment, up from 28 last week.
Fear and Greed Index. Source: CoinMarketCapCould Bitcoin reclaim $65,000 amid easing geopolitical and inflation risk?Bitcoin’s near-term recovery after testing sub-$60,000 levels earlier this month aligns with the easing geopolitical tensions between the US and Iran. In addition, the bullish US CPI data for June has reduced the odds of interest rate hikes, prompting risk-on sentiment among investors.
Bitcoin inches closer to $65,000 on Thursday, but the EMA around $65,136 keeps the broader technical tone fragile despite a modest recovery. Momentum indicators are more constructive, as the Relative Strength Index (RSI) is at 55, hovering just above the neutral midline, while the Moving Average Convergence Divergence (MACD) maintains an uptrend with its signal line, which together suggests that downside pressure is easing but not yet strong enough to reclaim key overhead levels.
On the topside, immediate resistance is defined by the 50-day EMA at $65,136, and a sustained break above this barrier would open the way toward the $70,000 mark, followed by the 200-day EMA around $74,484.
BTC/USDT daily price chart.On the downside, initial support aligns with the horizontal level at 60,000, where a break lower would expose further weakness.
Ondo rallies on DTC-compliant tokenized stock representationsOndo reclaimed its 50-day EMA at $0.3367 with a nearly 16% rebound on Wednesday. The pair inches closer to the 200-day EMA at $0.3769, which remains an overhead barrier, keeping the near-term bias neutral to mildly constructive.
Momentum tones are supportive, with the RSI at 63 and hovering in bullish territory, while the MACD holds above its signal line, suggesting buyers still retain the upper hand despite nearby overhead supply.
A breakout above the 200-day EMA at $0.3769 could extend its rally to the $0.4524 selling zone, which has capped multiple recovery attempts over the past seven months.
ONDO/USDT daily price chart.On the downside, immediate support is at the 50-day EMA near $0.3367, where a break would likely trigger a deeper pullback and signal that the latest advance is losing traction.
Ether.fi eyes a breakout rally toward the 200-day EMAEther.Fi rises above its 50-day EMA at $0.3813 with an 11% rise on Wednesday. At the time of writing, ETHFI tests breaking above an overhead resistance trendline near $0.4400 on Thursday, potentially reinstating a bullish recovery.
However, the pair remains capped below its 200-day EMA at $0.5077, which could serve as key resistance following the trendline breakout.
The RSI at around 62 suggests firm but not yet overbought upside momentum, and the MACD remains above its signal line in the positive territory, hinting that buying pressure is still driving the recovery.
ETHFI/USDT daily price chart.Looking down, initial support is seen around the reclaimed 50-day EMA at $0.3813 as a more significant bullish defense area.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
Ether.fi [ETHFI] has posted a sharp decline as capital outflows across the broader market drive much of the fall.
The asset recorded a double-digit loss in the early hours of Tuesday, extending its price to a low of $0.384 on the chart. Outflows continue to dominate, yet the market is already flashing early signs of a possible recovery and leaves room for a rally to still stretch higher.
Capital exits ETHFI’s on-chain economy The steepest hurdle facing ETHFI’s price over the past day has been the on-chain capital exit.
Total value locked (TVL), which gauges the strength of on-chain capital through the deposits and withdrawals moving through the protocol, shows that roughly $54 million has left the market.
The metric slid from $3.212 billion to roughly $3.153 billion, signalling that retail holders are exiting the market, likely on concerns over rising volatility.
Source: DeFiLlama On a protocol level, the asset has held up decently, with earnings—the profit that remains once incentives are stripped out—reaching $1.34 million and already nearing half of the $2.79 million generated in June.
The pattern suggests the recent sell-off reflects a reaction to market sentiment and not a structural bearish trend. That sentiment traces back to the notable decline the crypto market absorbed over the past day, when it shed around $8.61 billion in total capitalization.
Perpetual contracts keep bears in play The clearest gap in the market emerges from ETHFI’s perpetual contracts, which show that bears still hold some strength after an 11% decline dragged open interest to $62.26 million.
That gap stems from an imbalance in liquidations, with market data revealing a wide disparity between long and short liquidations. Over the past 24 hours, long traders have lost roughly 40 times more than short traders.
The liquidation data shows short traders lost just $2,210 against $89,680 for long traders across the same period, and the uneven spread points to the strength of the bears.
Source: CoinGlass On lower timeframes, the liquidation disparity widens further, though the capital lost this time around remains minimal.
The liquidation heatmap offers no clear directional bias for the asset, instead showing fairly evenly distributed clusters.
These clusters mark areas on the chart where buy or sell orders sit, and clusters resting above the price usually act as sell zones that pull the price toward them and force selling, while clusters below reverse the dynamic and force buys once the price drops into them.
For now, there’s no decisive direction, leaving momentum to dictate the next price move.
Rising long volume hints at ETHFI accumulation While liquidations remain skewed in favour of the shorts, activity on the long-to-short ratio points to rising accumulation.
At the time of writing, the long-to-short volume ratio on the chart shows more long volume in the market, pushing up to 1.02. A continued climb would imply that buy interest still lingers in the market.
Source: CoinGlass Whether that offers a sufficient basis for a shift in direction remains unclear. The broader crypto market that shaped the sell-off sentiment has begun cooling, and a strong chance remains that ETHFI benefits from the turn and recovers, flipping momentum against the sellers.
Final Summary Ether.fi’s token fell 10% after roughly $54 million left the protocol, moving in step with a broader crypto market that shed about $8.61 billion in a day. Buying activity is quietly picking up and a calming market could give ETHFI room to bounce back.
Michael Saylor: Bitcoin relies on capital, consensus, and cybersecurity to maintain the dynamic balance of its system.
MicroStrategy founder Michael Saylor published an article stating that Bitcoin is a spontaneously evolved network system, where the influence of wallets depends on the number of satoshis they hold, nodes’ influence is determined by commercial activities, miners’ influence by computing power, and capital, consensus, and network security together sustain a dynamic balance.
5 minutes ago
CASHCAT's launchpad NOXA.Fun saw protocol fees reach four times that of Pump.fun yesterday.
According to DefiLlama data, the launchpad platform NOXA.Fun on Robinhood Chain generated protocol fees of $2.33 million yesterday, while Pump.fun’s protocol fees reached $575,500 the same day. NOXA.Fun serves as the launchpad for CASHCAT, with a cumulative total of 248,562 active user addresses.
5 minutes ago
WSJ Survey: U.S. Recession Probability Drops to 25%, Down From 33% in April
According to survey data from The Wall Street Journal, the probability of a U.S. economic recession has dropped to 25%, down from 33% in April.
5 minutes ago
Commercial shipping traffic through the Hormuz Strait has dropped significantly.
According to reports from China Central Television (CCTV), commercial shipping traffic through the Strait of Hormuz has dropped sharply following Iran’s announcement of the reclosure of the strait. Citing commercial shipping tracking data, Iran stated that only 11 commercial vessels passed through the Strait of Hormuz in the past 24 hours, including 8 oil tankers and 3 cargo ships.
5 minutes ago
Two hackers today spent a total of 11.71 million DAI to buy ETH.
According to Yu Jian Monitoring, two hackers purchased Ethereum today. The first hacker, who stole funds from Coinbase users, spent 7.378 million DAI to acquire 4,049.7 ETH in the early hours of today, at an average price of $1,822. The second is an address that received ETH from Tornado Cash last November; it spent 4.34 million DAI to repurchase 2,405 ETH two hours ago, at an average price of $1,804.
5 minutes ago
Polymarket's weekly revenue topped $11 million this week, hitting an all-time high.
According to Defillama data, Polymarket's weekly revenue exceeded $11 million this week, hitting an all-time high, while the protocol's cumulative revenue has surpassed $97 million.
ETHFI Leads the Pack With a Sharp Weekly Gain@ether_fi's native governance token $ETHFI has emerged as one of the standout performers in the current crypto market cycle, posting a nearly 15% gain in 24 hours and extending its weekly advance to around 25%. According to CoinGecko, the token has risen approximately 24.9% over the past seven days, outpacing the broader cryptocurrency market, which is up roughly 5.6% over the same period, as well as the wider Ethereum ecosystem cohort, which has gained around 12.7%.
The move has brought $ETHFI within reach of reclaiming a $400 million market cap. CoinGecko data places the current market capitalisation at approximately $407 million, with a circulating supply of around 930 million tokens.
The catalyst behind the rally is not immediately obvious. No single announcement has been pinpointed, and the question of what is driving the surge remains open. That said, a number of notable protocol developments have taken place in recent weeks that may be contributing to renewed investor interest.
Protocol Activity Builds a Stronger Fundamental CaseIn early June, ether.fi and onchain vault manager Plume launched a new yield-bearing real-world asset vault. According to The Block, ether.fi allocated $100 million to the vault, drawing capital from its liquidity provider base, including funds, family offices, and high-net-worth individuals, as well as from its existing liquid vaults.
Separately, ether.fi entered a three-year, $3 billion agreement with ETHGas, committing roughly 40% of its staked ETH to support a new forward market for Ethereum blockspace. The partnership gives ether.fi exclusive access to ETHGas's preconfirmation platform, providing execution guarantees and predictable pricing for buyers such as rollups and institutional traders.
On the tokenomics side, the ether.fi DAO has an approved proposal to allocate up to $50 million from treasury funds for $ETHFI buybacks when the token trades below $3, funded by protocol revenue. Trading volume has also picked up sharply, with CoinGecko noting a 123.5% increase in 24-hour volume, a signal of elevated market activity rather than a quiet drift higher.
Ether.fi is a decentralised, non-custodial liquid restaking protocol on Ethereum. Users stake ETH and receive eETH, the first native liquid restaking token on the network, which can be deployed across DeFi to earn additional yield. The $ETHFI token is used for protocol governance.
Whether the current move has legs or is a short-term rerating remains to be seen, but the combination of strong protocol momentum and improving tokenomics gives traders more to work with than momentum alone.
Sources:
CoinGecko: Ether.fi (ETHFI) Price and Market Data
The Block: Ether.fi Allocates $100 Million to Plume RWA Vault
The SSV Network DAO and Ether.fi have joined forces to launch a new Learn & Earn campaign on the Galxe platform. Part of the reasons behind the collaboration is to educate community members about the advantages of Distributed Validator Technology (DVT) as well as the importance of decentralizing Ethereum’s base layer.
Through this partnership, participants can earn a share of a $50,000 ETHFI prize pool. 150 lucky winners will be randomly selected. Aside from this, all users will also have the chance to earn points as part of Ether.fi’s Season 3 incentive program.
The campaign is set to last for two weeks, aiming toward increasing engagement and activities while at the same time informing them about the role of DVT in powering the SSV network Ether.fi’s restaking operations.
Members who partake in the Learn & Earn campaign will gain points for getting themselves accustomed to SSV’s role in helping decentralize Ether.fi’s non-custodial protocol.
Ether.fi’s Achievements in Staking and the Growth of the SSV Network Ether.fi has been able to record some achievements since it emerged. The liquid restaking company has over 6,500 validators running on the SSV Network, making it one of the leading adopters of this open-source staking technology. It has also gotten more than $4.5 billion in ETH staked, and its ETHFI token has grown to become a prominent DeFi token.
The SSV network has also been growing continuously since its mainnet launch in December. The project has seen many people use its technology, which has caused a spike in its Total Value Locked (TVL).
The network’s growth has seen it rank above Kraken to become the fifth-largest Ethereum staking provider, which could be linked to its new milestone of securing more than 1.3 million staked ETH. It is also supported by more than 900 operators running over 40,000 validator nodes.
SSV Network is a seamless staking system for developers to use. The network uses DVT technology, a new development designed mainly for distributing validation between multiple machines. Due to its flexibility, SSV lets node operators and validators join the network and participate in distributed staking without needing any permission.
As mentioned earlier, Ether.fi is a developer of liquid restaking technology on Ethereum. This solution makes it simpler for people to stake their Ethereum without giving up control of their coins. Through this initiative, Ether.fi helps make the Ethereum network more decentralized while making it easier for Ethereum holders to participate and earn rewards.
Distributed Validator Technology is now a key part of the billion-dollar staking industry. It plays an important role in keeping Ethereum’s validator layer secure. The Learn & Earn campaign, created by SSV Network and Ether.fi, will help people understand DVT and decentralized restaking. It will also reward users for participating.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Cryptocurrency News, Ethereum News, News
Temitope is a writer with more than four years of experience writing across various niches. He has a special interest in the fintech and blockchain spaces and enjoy writing articles in those areas. He holds bachelor's and master's degrees in linguistics. When not writing, he trades forex and plays video games.
Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
Strict editorial policy that focuses on accuracy, relevance, and impartiality
Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.
With the new year just one day away, crypto analyst Alex Wacy (@wacy_time1) shared an overview of what he calls the best altcoins heading into 2025. The analyst, who has amassed an audience of over 190,000 followers on X, highlighted several projects that he believes have the potential to dominate in the potential coming altseason.
Best Altcoins In 2025 He begins with Render (RNDR), describing it as a decentralized GPU rendering platform for AI, metaverse, and creative content. He maintained that “Render is poised to become a key player in the virtual future,” pointing to its $3.66 billion market capitalization as evidence of investor confidence.
Following closely is Virtual, an AI-driven avatar initiative that is pegged at $3.41 billion in market cap, with Wacy touting Virtual as “the growth leader in 2024 in the virtual avatar sector” and predicting increasing adoption for metaverse, gaming, and social media applications.
Wacy also turns his attention to SEKOIA, mentioning its focus on identifying and mentoring emerging AI talent. Although smaller in scale at a $94 million market cap, this autonomous AI investment agent uses advanced pattern recognition and quantifiable predictions to gain a foothold in a competitive space.
Next in line for the best altcoins in 2025 is Pengu, which he calls “the official coin of Paddy Penguin, a major force in crypto.” Its substantial community and cultural traction reflect a hefty $2.28 billion market valuation, and its omnipresence in ETF ads combined with over 90 billion visits appear to confirm its cult-like following.
The list of best altcoins continues with Clearpool (CPOOL), a Decentralized Capital Markets Ecosystem valued at $341 million that provides insured loans to institutional borrowers in the DeFi arena through a dynamic interest model. The analyst noted that Clearpool’s approach to decentralized lending could offer a unique avenue for strategic investors.
He also spotlights Bittensor (Tao), a project intent on decentralizing AI solutions through an open ecosystem, weighed at $3.48 billion, and Hyperliquid (HYPE), a decentralized perpetuals exchange living on its own L1 with a $9.23 market cap. He describes Hype’s vision as “a high-speed, low-cost, transparent solution for perpetual futures,” though he advises caution, remarking that prospective investors should “research to understand its risks and potential.”
Io.net, which sits at $397 million, is categorized as a decentralized GPU network that reduces costs for AI developers, while CFG (Centric) aims to bridge DeFi with real-world assets. This $162 million project focuses on stable returns generated from real fiat value rather than solely leveraging volatile crypto.
Akash Network (AKT), valued at $746 million, is labeled by Wacy a “supercloud” that transforms cloud computing through a decentralized marketplace, and Ethena (ENA), at $2.69 billion, provides a synthetic dollar protocol on Ethereum, touted as “a crypto-native, bank-free solution for money.”
Wacy’s list also featured Helium (HNT) with a $1.13 billion market cap, identified for its decentralized IoT network, and Griffain in the Solana ecosystem, with a $211 million market cap, delivering scalable DeFi solutions for token swaps while upholding transparency.
The analyst also highlights Grasso (GRASS) in his list of the best altcoins for 2025 and its $683 million market cap, describing its decentralized data collection network for AI training as both functional and user-friendly. VitaDAO (VITA) is in Wacy’s focus because of its community-governed DAO funding longevity research. Its compact $54 million market cap appears poised for growth as members actively engage in decision-making and ownership, signifying a communal approach to biotech research in crypto.
Spectral, carrying a $194 million market cap, offers on-chain agents for easier application creation and includes a syntax tool that transforms natural language into Solidity. ETIGEN, or Energy Layer, at $170 million, extends novel concepts of restorative energy on Ethereum, and ONDO, with an impressive $2.83 billion market cap, aims to open up institutional-grade DeFi services and real-world asset (RWA) tokenization.
Wacy further singles out AIXTB, at $377M, which monitors crypto-related discussions via a proprietary engine to uncover high-sentiment opportunities, and Ether.fi (ETHFI), priced at $446M, which supports non-custodial ETH staking and DeFi integration. Throughout his breakdown, he underscored the cyclical nature of the crypto market, stating that these best altcoins “could see significant growth in 2025” once capital flow rotates away from Bitcoin and into high-potential altcoin narratives.
His overall thesis hinges on what he perceives as a predictable pattern in every major market cycle. “Altcoins typically pumping when BTC Dominance starts a strong downtrend,” the analyst wrote. He cited the example from 2021, when Bitcoin’s dominance fell from around 73% to 40%, triggering a monumental rally for altcoins like SOL, ADA, and DOGE.
Pointing out that current BTC dominance is about 55%, which he calls a “significant resistance zone,” he predicts a swift drop to 40% if a breakdown occurs. “As I mentioned before, my bet for the altseason is in the spring of 2025,” he said, while admitting that he also shares the common sentiment of disbelief that surrounds every cycle. “That’s okay, it means the market is doing a good job of ‘smoking people out.’ Patience friends, patience always pays off,” he concluded.
At press time, the Bitcoin dominance (BTC.D) stood at 58.02%.
Bitcoin dominance, 1-week chart | Source: BTC.D on TradingView.com Featured image created with DALL.E, chart from TradingView.com
Aave, along with several other organizations, submitted a governance proposal to the Arbitrum DAO, requesting the release of frozen ETH and pledging to invest in DeFi United.
Crypto-focused payment platform Ether.fi is shifting its Ether.fi Cash payment network from the Scroll blockchain to OP Mainnet. This transition will see nearly 70,000 active cards and over 300,000 accounts integrated into Optimism’s Superchain ecosystem within a few months. As Ether.fi prepares for a high-volume asset migration, company executives say the move aims to make its consumer applications more efficient and scalable under the new infrastructure.
OP Mainnet Ushers in a New Phase for Ether.fi CashEther.fi, renowned for its innovative restaking services, has been earning rapid recognition in the decentralized finance landscape. By 2024, the platform widened its offerings with Ether.fi Cash, making stablecoin spending and real-world card payments possible for users. Through Ether.fi, customers can either spend stablecoins directly or use staked assets such as eETH as collateral to fund real Visa transactions. The platform claims its cards alone now account for nearly half of all crypto-powered card transactions in the market.
Strategic Rationale for Network MigrationSelecting the right network—one that offers speed and deep liquidity—remains at the heart of every successful crypto payment solution. Ether.fi representatives emphasize that Optimism’s liquidity depth is better suited for this use case than Scroll’s ZK-rollup technology. Throughout the transition, Ether.fi will absorb all card transaction gas fees on behalf of users. The platform currently processes about $2 million in daily spending volume, underscoring the scale of its operations.
Technical and Operational Considerations in MigrationDuring the transition, Ether.fi will utilize support from OP Enterprise and adopt its shared codebase. Ether.fi Cash is recording around 2,000 internal swaps and an impressive 28,000 spending transactions each day, with these numbers reportedly doubling every two months. To ensure users don’t experience disruptions, the protocol is absorbing all transaction costs during the switch. Efficiency and capital effectiveness have been the guiding forces behind this network migration.
According to company data, as many as 3.6 billion transactions took place on the OP Stack infrastructure in the second half of 2025 alone. With Ethereum-based Layer 2 solutions expanding their market share at a brisk pace, the technical advantages and capacity of the Superchain ecosystem position Ether.fi to reach broader audiences at higher speeds.
As Ether.fi consolidates its presence on OP Mainnet, it will leave behind significant daily transaction volume on Scroll. This shift strengthens OP Mainnet’s standing in the ecosystem by integrating a high-volume, loyal user application, while Scroll is set to lose a considerable chunk of daily activities as a result.
Elsewhere in the Ethereum ecosystem, more projects are moving toward tried-and-tested infrastructures that offer mature liquidity and robust reliability over emerging technologies. On the user side, despite backend technical differences, the priority remains a seamless card payment experience without friction or delays.
The Ether.fi team explained that users won’t notice any changes in transaction fees during the migration, emphasizing that their long-term vision is to enable global, on-chain real-world payments.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.
TLDR: A forged cross-chain message released $292M in unbacked rsETH due to a single-DVN bridge misconfiguration. Ether.fi pinned message libraries and raised DVN verification to a unanimous 4/4 threshold on all chains. weETH bridging will be deprecated on Scroll, Swell, Bera, zkSync, Mode, Blast, Morph, and Sonic by June. Ether.fi joins DeFi United and contributes 5,000 ETH to support coordinated cross-chain security response. Ether.fi has disclosed its full response to the April 18 rsETH exploit that affected Kelp DAO. A forged cross-chain message released approximately $292 million in unbacked rsETH during the incident.
No systems on the platform were directly compromised. The EtherFi Liquid vaults also had no direct exposure to rsETH.
The event exposed a critical vulnerability in DeFi cross-chain messaging infrastructure. This led the protocol to execute a protocol-wide security hardening across all 20 chains where weETH is deployed.
Three-Layer Security Hardening Deployed Across weETH Pathways The root cause of the exploit was a single-DVN configuration lacking redundancy. Ether.fi’s bridge had previously enforced two or more DVNs on all pathways. Still, the incident triggered a full review and three concrete hardening measures.
The first fix involved message library pinning on every weETH pathway. Ether.fi pinned the SendUln302 and ReceiveUln302 addresses into weETH’s OApp-specific configuration slot.
This blocked LayerZero’s multisig from swapping in a library that bypasses DVN verification. The fallback path has been fully closed across all chains.
The protocol then pinned its four-DVN set and raised the verification threshold to 4/4. Every inbound weETH message now requires attestation from all four DVNs.
A single malicious or unavailable DVN halts the message rather than being bypassed. LayerZero independently reviewed and confirmed the updated configuration.
Furthermore, the platform tightened per-route rate limits across all bridge contracts it controls. Each source and destination pathway now enforces a conservative inbound and outbound weETH cap.
These limits sit on contracts fully controlled by the protocol. They remain effective regardless of upstream bridge provider behavior.
Chain Deprecations and the Formation of DeFi United Beyond the immediate fixes, the protocol is evaluating a second independent bridge provider to reduce systemic risk. Chainlink CCIP and Wormhole are currently under consideration alongside LayerZero.
Cross-chain weETH messages would then require attestation from a quorum of providers. This move eliminates single-provider dependency entirely.
Following a systematic L2 risk assessment, ether.fi is deprecating weETH bridging on eight networks. Scroll, Swell, Bera, zkSync, Mode, Blast, Morph, and Sonic will be deprecated effective end of June.
To close the coordination gap in DeFi, ether.fi is joining the DeFi United collective. The coalition brings together Aave, Kelp DAO, LayerZero, and ether.fi.
Shared security standards and coordinated incident responses are its core focus. This approach ensures no protocol faces a cross-chain failure alone.
The EtherFi Foundation is contributing 5,000 ETH to a dedicated DeFi United relief vehicle. Other partners in the collective are also contributing alongside ether.fi. When future failures occur, the coalition aims for the ecosystem to respond as one.