Key Points
- EigenLayer, a DeFi protocol, has seen a significant increase in total value locked (TVL), becoming the second-largest in the sector.
- The protocol’s growth has sparked the rise of projects such as Ether.fi.
EigenLayer’s growth since 2024 has been nothing short of remarkable.
The restaking protocol experienced an impressive 11x increase in total value locked (TVL) since January 1st, based on data from DeFiLlama.
Restaking and Its Impact
Restaking, a trending DeFi narrative, involves repurposing staked ETH to extend security to other applications, allowing stakers to earn additional rewards.
Users can also stake liquid derivatives of their staked assets (LSD), such as those from Lido [LDO], Rocket Pool, and Coinbase.
According to IntoTheBlock, about 25% of all LSD was restaked on EigenLayer, and 2.38% of ETH’s total supply has been deposited.
Boosting the ETH Staking Market
The enthusiasm surrounding EigenLayer has also seemingly stimulated the broader ETH staking market.
More than 26% of all ETH in circulation were locked on the network’s deposit contract at the time of writing.
Interestingly, the growth curve went parabolic in the last month, echoing EigenLayer’s TVL rise.
EigenLayer’s rapid growth has led to the emergence of unique business models aiming to leverage the expanding restaking market.
Ether.fi has introduced the native restaking concept, which involves staking ETH on the protocol, which is then automatically restaked on EigenLayer.
This differs from the traditional restaking concept where a user deposits already staked ETH onto EigenLayer.
