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News

EigenLayer TVL Reaches $6 Billion with New Restaking!

February 10, 2024 - Around 2 mins mins to read

Key Points:

  • EigenLayer TVL hits $6 billion post 181% surge, surpassing Uniswap.
  • Opening a new restaking window propels TVL growth by 120% in less than 48 hours.
  • EigenLayer pioneers Ethereum restaking, introduces new LSTs, plans to eliminate TVL caps permanently.
EigenLayer TVL soared past $6 billion, marking an impressive 181% surge within the last seven days.
EigenLayer TVL Reaches $6 Billion with New Restaking!

The surge follows the protocol‘s strategic decision to open a new restaking window earlier this week, a move that has proven highly lucrative.

DeFiLlama’s data underscores EigenLayer’s newfound prominence, propelling it to become the fifth-largest DeFi protocol globally, surpassing Uniswap. It now stands proudly behind leading protocols like Lido, Maker, AAVE, and JustLend in terms of TVL.

EigenLayer’s recent announcement of resuming restaking and removing EigenLayer TVL caps for all tokens from February 5 to 9 has notably contributed to its remarkable surge. Furthermore, the protocol plans to permanently eliminate caps in the coming months. The introduction of new Liquidity Staking Tokens (LSTs), including Frax Ether (sfrxETH), Mantle Staked Ether (mETH), and Liquid Staked Ether (LsETH), has also fueled its growth.

$6 Billion TVL Shifts DeFi Landscape Dynamically

EigenLayer TVL Reaches $6 Billion with New Restaking!

In less than 48 hours since reopening the restaking window, EigenLayer TVL skyrocketed by an impressive 120%, underlining the community‘s enthusiasm for the protocol’s offerings.

Restaking, a process where liquidity pool tokens are staked a second time, has been a key driver of EigenLayer’s success. The protocol’s innovative approach allows for the reinvestment of staking rewards, enhancing returns through liquid staking methods. EigenLayer’s restaking mechanism is pivotal in facilitating the reuse of liquid staking derivatives’ tokens.

EigenLayer Reshapes DeFi Rankings with 181% TVL Surge

While restaking presents various advantages, including potential double gains and heightened network security, it is not without risks. Ethereum co-founder Vitalik Buterin has previously raised concerns about potential overloads or congestion on the Ethereum mainnet, especially during upgrades like the Dencun upgrade.

EigenLayer’s latest update reveals that restaking LSTs was temporarily paused to prepare for the mainnet launch of EigenDA and Operator. The protocol reports an impressive 2.45 million Ethereum restaked, further solidifying its position as a dynamic force in the evolving DeFi landscape.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

EigenLayer

EigenLayer TVL

EigenLayer TVL Reaches

Author

Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.