- EigenLayer was the second-largest DeFi protocol on the time of writing.
- EigenLayer’s exponential development spurred rise of tasks like Ether.fi.
EigenLayer’s development because the starting of 2024 has been nothing in need of historic.
The restaking protocol noticed a mindboggling 11x bounce in complete worth locked (TVL) because the 1st of January, in keeping with AMBCrypto’s examination of DeFiLlama information. The DeFi undertaking, 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 belongings (LSD), resembling these from Lido [LDO], Rocket Pool, and Coinbase.
As per a latest X put up by IntoTheBlock, a couple of quarter of all LSD was restaked on EigenLayer, whereas 2.38% of ETH’s complete 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.
In line with AMBCrypto’s evaluation of Staking Rewards’ information, greater than 26% of all ETH in circulation had 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 development has additionally resulted within the rise of distinctive enterprise fashions seeking 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 robotically restaked on EigenLayer.
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That is totally different from the standard restaking concept the place a person deposits already staked ETH onto EigenLayer.
