The post ETHFi faces sharp 9% drop – User activity, liquidity, and income plunge appeared on BitcoinEthereumNews.com. Key Takeaways What caused ETHFi’s recent 9% decline? The drop followed a $98K plunge in fees and a massive liquidity drawdown to $680K. How severe is ETHFi’s on-chain slowdown? Daily active users dropped to 328, the lowest since July, while TVL fell to $9.92B, reflecting a deep investor exit. EtherFi [ETHFi] has seen one of its steepest outflows in the past day, recording a 9% drop. AMBCrypto traced this decline to weakening on-chain performance across the market. The effects are gradually surfacing, and a further drop could follow. These factors will likely shape ETHFi’s price dynamics in the coming days. Users churn at the helm The decline in ETHFi’s performance stems largely from a sustained exit of users from the platform. According to recent data from Artemis, transaction users have fallen to levels last seen in July 2025. Currently, only 328 on-chain users interact with the protocol—a clear sign that investor sentiment has weakened. This trend has directly impacted the protocol’s revenue, with fees generated plummeting sharply. Source: Artemis To put this in context, fees dropped from $210,500 to $111,700 in just one day, reflecting a loss of about $98,000 that could have contributed to protocol earnings. Declining protocol usage, however, isn’t the only challenge facing ETHFi. AMBCrypto’s analysis found other factors contributing to rising sell pressure and reduced liquidity. Sell-offs heighten amid liquidity crunch Market data shows a notable sell-off as investors continue to reduce exposure to ETHFi. Liquidity within the staking protocol has dropped to its lowest level this year. According to DeFiLlama, the total available on-chain liquidity for ETHFi now stands at roughly $680,000. This suggests that the amount of ETHFi locked in decentralized exchanges (DEXs) like Uniswap [UNI] has declined sharply. Source: DeFiLlama The fall indicates waning long-term conviction, as investors are offloading tokens to avoid… The post ETHFi faces sharp 9% drop – User activity, liquidity, and income plunge appeared on BitcoinEthereumNews.com. Key Takeaways What caused ETHFi’s recent 9% decline? The drop followed a $98K plunge in fees and a massive liquidity drawdown to $680K. How severe is ETHFi’s on-chain slowdown? Daily active users dropped to 328, the lowest since July, while TVL fell to $9.92B, reflecting a deep investor exit. EtherFi [ETHFi] has seen one of its steepest outflows in the past day, recording a 9% drop. AMBCrypto traced this decline to weakening on-chain performance across the market. The effects are gradually surfacing, and a further drop could follow. These factors will likely shape ETHFi’s price dynamics in the coming days. Users churn at the helm The decline in ETHFi’s performance stems largely from a sustained exit of users from the platform. According to recent data from Artemis, transaction users have fallen to levels last seen in July 2025. Currently, only 328 on-chain users interact with the protocol—a clear sign that investor sentiment has weakened. This trend has directly impacted the protocol’s revenue, with fees generated plummeting sharply. Source: Artemis To put this in context, fees dropped from $210,500 to $111,700 in just one day, reflecting a loss of about $98,000 that could have contributed to protocol earnings. Declining protocol usage, however, isn’t the only challenge facing ETHFi. AMBCrypto’s analysis found other factors contributing to rising sell pressure and reduced liquidity. Sell-offs heighten amid liquidity crunch Market data shows a notable sell-off as investors continue to reduce exposure to ETHFi. Liquidity within the staking protocol has dropped to its lowest level this year. According to DeFiLlama, the total available on-chain liquidity for ETHFi now stands at roughly $680,000. This suggests that the amount of ETHFi locked in decentralized exchanges (DEXs) like Uniswap [UNI] has declined sharply. Source: DeFiLlama The fall indicates waning long-term conviction, as investors are offloading tokens to avoid…