- EigenLayer was the second-largest DeFi protocol on the time of writing.
- EigenLayer’s exponential progress spurred rise of initiatives like Ether.fi.
EigenLayer’s progress for the reason that starting of 2024 has been nothing in need of historic.
The restaking protocol noticed a mindboggling 11x bounce in whole worth locked (TVL) for the reason that 1st of January, based on AMBCrypto’s examination of DeFiLlama knowledge. The DeFi venture, which was at the moment the second-largest, was not even within the prime 10 record when 2024 started.
Restaking>>Staking
One of many hottest new DeFi narratives, restaking entails repurposing staked ETH to increase safety to different functions, thus permitting stakers to earn further rewards on their investments.
Aside from staking ETH natively, customers have an possibility of staking the liquid derivatives of their staked property (LSD), comparable to these from Lido [LDO], Rocket Pool, and Coinbase.
As per a current X submit by IntoTheBlock, a couple of quarter of all LSD was restaked on EigenLayer, whereas 2.38% of ETH’s whole provide has been deposited.
Supply: IntoTheBlock
Sharp rise in ETH staking
The hype round EigenLayer additionally appeared to have boosted the broader ETH staking market.
Based on AMBCrypto’s evaluation of Staking Rewards’ knowledge, greater than 26% of all ETH in circulation have been locked on the community’s deposit contract at press time.
Curiously, the expansion curve went parabolic within the final month, mimicking EigenLayer’s TVL rise.
Supply: Staking Rewards
Native ETH restaking gaining traction
EigenLayer’s exponential progress has additionally resulted within the rise of distinctive enterprise fashions trying to faucet into the rising restaking market.
Ether.fi, as an illustration, launched the so-called native restaking idea. It entails staking ETH on the protocol, which might be then mechanically restaked on EigenLayer.
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That is totally different from the standard restaking concept the place a consumer deposits already staked ETH onto EigenLayer.
