Key Points
- EigenLayer has amassed over $15 billion in deposits, significantly boosting the staked ETH supply.
- ETH’s status as a yield-bearing, long-term investment asset is growing, reducing its availability on exchanges.
EigenLayer, a decentralized finance (DeFi) project, has managed to attract more than $15 billion in deposits within a year of its launch. This has made it one of the most successful DeFi projects of recent times.
Staked ETH Supply Increase
The total value locked (TVL) in the restaking protocol has seen a 14-fold increase since the beginning of the year. This growth has made it the second leading DeFi project by TVL.
The deposits in EigenLayer account for about 4% of Ethereum’s total circulating supply, which is the primary asset around which its use case revolves.
Restaking, a popular topic in the Web3 sector, adds value to staked ETH by repurposing it to provide security to applications other than the Ethereum mainnet. This arrangement allows stakers to earn additional yields on their deposits.
ETH as a Long-term Investment Asset
EigenLayer, as the largest restaking protocol, has significantly influenced ETH staking. The staked ETH supply has increased by 10% year-to-date (YTD), mirroring the surge in EigenLayer’s deposits.
In contrast, the amount of liquid ETH available on exchanges has continued to decrease. This divergence highlights ETH’s growing status as a yield-bearing, long-term investment asset, moving away from speculative trading.
Moreover, with an increasing amount of ETH being locked up in staking services, the asset is likely to become less volatile, attracting a wider range of investors.
At the time of writing, the second-largest asset was trading at $3,141, following a 2.38% rise over the week. The market sentiment was one of greed, suggesting that the demand for the asset remains strong.
