EigenLayer’s complete worth locked (TVL) has surged to $10 billion, marking a big uptick from its $1.1 billion valuation at first of the 12 months. This development, equating to 2.93 million Ethereum (ETH), underscores the protocol’s increasing affect inside the decentralized finance (DeFi) sector.
EigenLayer permits customers to deposit and restake ETH by way of numerous liquid staking tokens. This course of goals to boost the safety of third-party networks.
How DeFi Protocol EigenLayer’s TVL Surged 5X Since February
Current weeks have witnessed outstanding development in EigenLayer’s TVL, significantly during the last 30 days. On February 2, 2024, the TVL stood at round $2 billion however has since grown 5 instances.
This enhance coincides with EigenLayer’s determination to quickly carry restrictions on token restaking and take away TVL caps for every token. The protocol anticipates making these modifications everlasting within the close to future, signaling a strategic shift in its operational framework.
EigenLayer’s rise in TVL has propelled it to grow to be the third-largest DeFi protocol, overtaking Maker. Now, it lags behind AAVE by a margin of roughly $92 million. This development may be attributed to a constant inflow of ETH deposits, facilitated primarily by liquid restaking protocols and the appreciating worth of Ethereum itself.
Learn extra: What Is EigenLayer?
EigenLayer TVL. Supply: DefiLlama
The anticipation of an EigenLayer airdrop has additionally performed an important position, attracting vital consideration from the DeFi group. Many customers deposit their staked Ethereum into EigenLayer to boost their probabilities of receiving airdrop advantages. At the moment, the protocol completely helps native restaking with EigenPod.
EigenLayer’s strategy to restaking has garnered widespread consideration. This mannequin permits Ethereum or ERC-20 token holders to contribute to the safety of different initiatives or functions on the community.
In change, contributors obtain extra rewards, thereby enhancing the general safety and effectivity of the Ethereum ecosystem with out necessitating the locking up of extra belongings.
The challenge’s success and modern options haven’t gone unnoticed by buyers. In March 2023, EigenLabs secured a $50 million Collection A funding spherical led by Blockchain Capital.
Learn extra: Ethereum Restaking: What Is It And How Does It Work?
This was adopted by a considerable $100 million funding from Andreessen Horowitz in a Collection B spherical final month. Moreover, Binance Labs’ latest funding in Renzo, a Liquid Restaking Token (LRT) and Technique Supervisor for EigenLayer, highlights the rising curiosity within the protocol’s restaking options.
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