Renzo Restaked ETH Price Prediction: 2025, 2030, 2040

Renzo's ezETH: Recovering After Depeg Trouble, Can $17M Help?

Right now, in early May 2025, Renzo Restaked ETH (ezETH) is still a noticeable player among Liquid Restaking Tokens (LRTs) built on the EigenLayer system. Think of ezETH as a stand-in token for Ether you've staked through Renzo; it tries to follow Ethereum's (ETH) price, which is bouncing between roughly $1,904.96 and $1,920.05 based on the latest numbers. Still, its story really shows the big opportunities and dangers lurking in the LRT world—a space known for growing incredibly fast, hitting key development points, and swinging wildly in value.

You can't really grasp where ezETH stands today without looking back at the major depeg it suffered in April 2024. What kicked it off? Mostly big sell-offs after Renzo talked about launching its own REZ token and wrapping up its first airdrop season. The community wasn't happy with how tokens were being handed out or who qualified, adding fuel to the fire. On decentralized exchanges like Uniswap, ezETH's price crashed, dipping near $688 even while ETH stayed above $3,100. Making things much worse, there was no quick way to withdraw funds back then. People needing cash had to dump their ezETH onto DEX pools, overwhelming them and causing huge losses – reportedly over $340 million got liquidated for users borrowing against ezETH on places like Gearbox and Morpho Labs. The peg mostly got back in line eventually, but it was a harsh lesson about liquidity problems with LRTs, especially when you can't easily redeem your tokens. Renzo did add a withdrawal feature later, fixing a major weakness the depeg exposed, although ezETH still sometimes trades a little cheaper than ETH, showing some investors remain cautious.

On the building side, Renzo Protocol hasn't been sitting still; they've been working on improvements and trying to grab more market share. They first raised $3.2 million in seed money led by Maven11 Capital back in January 2024. Then, in June 2024, they announced another $17 million secured across two funding rounds, with big names like Galaxy Ventures and Brevan Howard Digital Nova Fund leading the charge. They said this new money was meant to expand their restaking services on EigenLayer, specifically adding support for ERC-20 tokens. The idea is to attract more than just ETH-based assets. Renzo founding contributor Lucas Kozinski pointed this out, saying, “EigenLayer pioneered native ETH restaking, which is now expanding into other assets including $EIGEN to secure EigenDA… The use of ERC-20s for restaking is opening the door for other liquid restaking tokens to join alongside ezETH.” Teaming up with others, like Everclear (which used to be Connext), also gave Renzo a big boost in mid-2024. This partnership made it easier for people on various Layer 2 chains (like Arbitrum, Base, Blast, Linea, Mode, and BNB Chain) to restake natively, bringing in over $1 billion in Total Value Locked (TVL) initially. But Renzo's TVL has been a rollercoaster; it peaked over $3.3 billion (some reports even said close to $4 billion by late May 2024), but then dropped quite a bit after they turned on withdrawals. DeFiLlama currently shows around $706.81 million in TVL, way down from its peak, highlighting how hard it is to keep funds locked up once incentives end and people can pull their money out.

How people feel about Renzo and ezETH is a mixed bag, but it matters a lot. The protocol did attract huge amounts of TVL, becoming the second-biggest LRT provider for a time. However, the way they handled the April 2024 airdrop and the depeg that followed drew heavy criticism. People complained about unclear communication (especially a confusing token distribution chart), tokenomics that seemed to favor insiders, and the messy timing of when people could claim tokens versus when they hit exchanges. Renzo tried to smooth things over by bumping the community airdrop share from 5% to 7% and changing the claim schedule relative to listings. Talking with the community on social media continues to be important for gauging how people feel. Random incidents, like a user accidentally sending $25 million of ezETH to a dead-end contract address in November 2024, also remind everyone about the risks of using smart contracts, though that was user error, not Renzo's fault.

Several money-related factors influence how ezETH is doing in May 2025. The overall health of the crypto market and Ethereum's own price path are the biggest ones. How well the underlying EigenLayer restaking system continues to grow and evolve is also key. The main appeal of ezETH comes from earning rewards from two sources: standard Ethereum staking plus helping secure EigenLayer's Actively Validated Services (AVSs) – these are decentralized services using restaked ETH for security. Renzo passes these combined rewards (after taking fees for the protocol and node operators) to ezETH holders. This means, potentially, ezETH's value could climb relative to the underlying staked ETH over time. If EigenLayer attracts more value and secures more AVSs, ezETH's potential yield could go up. But the LRT space is crowded, with rivals like Ether.fi fighting for users. Renzo's own reward programs, like the REZ token distribution for DEX liquidity providers that finished in March 2025 (giving out 50M REZ over four months) and current ezPoints campaigns, also affect liquidity and user choices.

Looking further into 2025, price predictions for ezETH are wildly different, which is typical for crypto's ups and downs and the specific doubts around LRTs. * BitScreener thinks ezETH might average $4,632.94 in 2025, possibly trading between $4,001.75 and $5,138.17. * Another analysis, mentioned by AMBCrypto before, suggested a 2025 range of $3,132.4 to $4,698.59, assuming the market stays bullish and more people start using it. * That same source also floated a possible 1-3 year bullish target between $4,425.0 and $6,075.0. * One forecast guessed a peak near $3,967.26 might happen "soon" (relative to late 2024/early 2025), but weirdly also suggested a potential 12.82% drop in early May 2025 before growing later. * On the totally opposite side, WalletInvestor reportedly labeled ezETH a "bad long-term (1-year) investment," predicting it could fall towards $786.

Trying to make sense of these different views for May 2025 and after means balancing several things. For ezETH to do well, Ethereum's price needs to be strong, EigenLayer needs to grow steadily and reliably, Renzo has to successfully execute its plans (like adding ERC-20 restaking), liquidity needs to be incentivized well, and – this is huge – they must avoid another depeg. More interest from big institutions in staking and LRTs could also give it a push.

On the flip side, the risk of things going wrong is still very real. The biggest danger is another major depeg. That could be set off by crazy market volatility, a new security flaw found in Renzo or EigenLayer, or just a big change in how users feel, leading them to withdraw heavily or dump on DEXs. As analysts noted during the last depeg, even if withdrawals are possible, imbalances in DEX pools can still cause the peg to break temporarily. Wider government crackdowns on staking or DeFi could also kill the excitement. Intense competition might squeeze yields and chip away at Renzo's market share. And finally, if the whole crypto market takes a dive, ezETH would almost certainly go down with it.

So, the outlook for ezETH in May 2025 seems cautiously positive, but it really hangs on market trends and whether Renzo can execute well and keep people's trust. If Ethereum stays on an upward path and Renzo manages to compete effectively in the LRT space while keeping the peg stable and liquidity healthy, then price targets in the mid-$4,000s for 2025, like BitScreener suggests, seem possible. But the history of volatility and the risks baked into the LRT model mean a significant drop is always a possibility. Anyone involved needs to keep a close watch on liquidity levels, what the protocol is doing next, and any shifts in the wider market mood. How well Renzo uses its recent funding, its move into supporting assets like ERC-20s, and whether the ezETH peg stays solid will be the key things to watch in the coming months.