ETHZilla Deploys $100 million via EtherFi Amid Restaking Boom

- ETHZilla backs EtherFi with $100 million, aiming for higher DeFi returns. - Move underscores rapid growth in Ethereum restaking protocols. On September 2, 2025, the Peter Thiel-backed ETHZilla Corporation revealed plans to allocate $100 million in Ethereum (ETH) to EtherFi’s liquid restaking protocol. This move aims to boost yields and enhance the security of the Ethereum network. On September 2, The Block reported that ETHZilla aims to leverage EtherFi’s liquid staking architecture. Powered by EigenLayer technology, this architecture supports the redelegation of staked assets across Ethereum protocols. Liquid restaking protocols have surged in relevance, with the total value locked (TVL) in the sector reaching $30 billion amid a shift away from traditional staking. McAndrew Rudisill, ETHZilla’s Executive Chairman, described the partnership with EtherFi as pivotal to the company’s strategy of integrating decentralized finance (DeFi) into its asset management model. ETHZilla, which holds over 100,000 ETH, recently secured $425 million through a private placement supported by leading investors such as Electric Capital and Polychain Capital. The collaboration highlights EtherFi’s position as a leader in the liquid staking market by TVL. Institutional adoption of DeFi continues its upward trajectory, as firms like ETHZilla pursue higher yield opportunities that innovative liquid staking technologies enable. According to CoinMarketCap on September 2, Ethereum (ETH) was trading at $4,294.43 as of 18:09 UTC, reflecting a 0.941% decline in the last 24 hours. Meanwhile, EtherFi (ETHFI) was trading at $1.09, and its 24-hour trading volume showed a notable 5.476% increase.