Ether.Fi (ETHFI) token drops after the first transaction

ETHFI, the governing symbol of the liquidity recovery protocol Ether.Fi, has fallen 30 percent since its market debut.
Ether.Fi token listed on major exchanges such as Binance and OKX.

The price of ETHFI, the governing token of the liquidity restoration protocol Ether.Fi, fell by 30% after hours of its market launch.

ETHFI is listed on major exchanges including Binance and OKX and traded around $5.32. However, as the profits were completely reduced, the price of the token fell by almost 30% to a low of $3.30.

According to CoinGecko, Ether.Fi has a market cap of $394 million and a fully diluted value (FDV) of $3.4 billion at the time of writing. The circulating supply of the token is 115.2 million ETHFI and the total supply is 1 billion ETHFI.

Ether.Fi was seeing a trade volume of $250 million. DeFiLlama data shows Total Value Locked (TVL) at $2.97 billion. This is down slightly from the peak of $3.13 billion on March 15, 2024.

ETHFI tokenomics

Ether.Fi is the biggest protocol in the liquidity space and the interest and hype around it has been huge.

Launching in the Binance Launchpool was one of the biggest of the recent listings. Season 1 airdrops will introduce 6% of the total supply, Season 2 will introduce 5%. The platform notes that the Season 1 airdrop claim window will be open for 90 days.

While analysts are optimistic about Ether.Fi's future as a project, one concern for shareholders is the project's tokinomics.

The ETHFI token allocation aims to encourage long-term deep participation in key governance decisions for the continued success of the protocol.

The ETHFI Airdrop consists of 2 periods. Season 1 is 6% of the full token supply. Season 2 earns 5% from… pic.twitter.com/SBOIJQAfOR

— ether.fi (@ether_fi) March 16, 2024

With 1 billion tokens, almost 56% – 55.76% to be exact – will go to private investors and major contributors. Private investors hold 32.5% of the ETHFI supply, while core group members hold 23.26% of the total supply, according to Tokinomics data from the project.