Ethereum liquid restaking (LRT) protocols are pivoting away from the restaking business due to thin margins and security risks. Ether.fi announced its exit from restaking to become a neobank, while five leading protocols—Kelp, Renzo, Swell, Puffer, and Bedrock—are shifting toward neobanking, AI trading, and infrastructure services. The LRT market's $1.45 billion TVL generates only ~$100,000 weekly revenue, forcing a collective industry transformation.