EigenLayer Rises as Fourth-Largest Protocol by TVL, Outshines JustLend
Summary:
Ethereum restaking platform EigenLayer has risen to become the fourth-largest protocol in terms of total value locked (TVL), surpassing cryptocurrency lending platform JustLend. Its TVL saw a 5.73% growth to reach $6.99 billion on February 15, with a considerable increase over the past week and month. The platform's TVL ascended after it temporarily eliminated its staking cap to stimulate organic growth. The growth of Ethereum staking protocols started in January, shortly after EigenLayer exceeded $1 billion TVL. The platform holds a total of over 1.52 million Ether tokens and plans to launch its mainnet for investors soon.
Ethereum restaking platform EigenLayer has climbed to be the fourth most significant protocol according to total value locked (TVL), outperforming the cryptocurrency lending platform JustLend. On February 15th, EigenLayer's TVL surged 5.73% to reach $6.99 billion. In the past week alone, the value of the restaking protocol has grown by 47.95% and has expanded 307% in the previous month, according to data from DefiLlama.
EigenLayer's TVL began its ascent on February 5th, when the protocol temporarily lifted its stake cap to foster organic growth, according to the organization's announcement. Consequently, EigenLayer's TVL witnessed a significant increase of 181%, reaching $6.05 billion on Feb. 10., from a mere $2.15 billion on Feb 5. Although a new staking limit has been implemented, the project intends to abolish this restriction indefinitely.
Platforms like EigenLayer, which offers restaking, give validators the opportunity to "restake" liquid staking coins from Lido's stETH and RocketPool's rETH to validate and secure other networks. In addition to this, these assets can be utilized in other decentralized finance (DeFI) protocols to generate additional yield.
Despite being the largest protocol category with a $42.69 billion TVL, liquid staking is currently placed first, while restaking protocols, with a combined TVL of $6.99 billion, are in the sixth spot, according to the data from DefiLlama.
Leading up to Feb.9, one in four Ethereum validators have designated their withdrawal credits to EigenPod in the past 30 days, according to a post by Brianna Montgomery, strategy director at EigenLayer.
The initial surge in interest in staking protocols can be traced back to January, following EigenLayer's surpassing of $1 billion TVL on December 28. As of Feb. 15, the protocol currently has 108,574 depositors and holds a total of over 1.52 million Ether tokens, according to Dune's data.
EigenLayer is making plans to launch its operator mainnet in the near future, enabling investors to operate a staking node. Furthermore, the protocol is on the verge of releasing EigenDA, a decentralized data availability service constructed on Ethereum, as per a Feb. 9 announcement on X.
Published At
2/15/2024 1:00:45 PM
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