- EigenLayer was the second-largest DeFi protocol at the time of writing.
- EigenLayer’s explosive growth has spurred the development of projects such as Ether.fi.
The growth of EigenLayer since 2024 is nothing short of historical.
AMBCrypto’s analysis of the restaking protocols shows a staggering 11x increase in total value (TVL) locked since the first of January. DeFiLlama data. DeFi, the current second-largest project, wasn’t even on the top 10 list at the beginning of 2024.
Restaking>>Staking
Restaking is one of the hottest DeFi narratives. This involves repurposing staked Ethereum to extend security for other applications. Stakers can earn extra rewards from their investments.
Users can also stake liquid derivatives (LSD) of their staked assets, such as those of Lido [LDO]Rocket Pool and Coinbase.
As per a recent X post by IntoTheBlock, about a fourth of all LSD has been restaked on EigenLayer. meanwhile, 2.38% ETH total supply is now deposited.
Source: IntoTheBlock
Staking of ETH has risen sharply
The hype surrounding EigenLayer seemed to have also boosted the broader ETH staking markets.
AMBCrypto’s data analysis revealed that more than 26% (of all ETH) in circulation at the time of press were locked into Staking Rewards’ deposit contract.
Intriguingly, the growth curve resembled EigenLayer’s TVL increase in the past month.
Stake Rewards
Native ETH restaking gaining traction
EigenLayer’s exponential expansion has led to the rise of business models with unique approaches that aim to tap the growing market for restaking.
Ether.fi introduced, for example, the native restaking concepts. It involves staking ETH onto the protocol. The ETH is then automatically resteaked on EigenLayer.
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This is not the same as traditional restaking, where users deposit ETH that they have already staked onto EigenLayer.
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
Source: ambcrypto.com
