Key Points
- The concept of restaking has increased the appeal of Ethereum staking with over 12% of staked ETH restaked.
- Ethereum is increasingly being viewed as a yield-bearing asset due to stable, guaranteed returns from staking and restaking.
Ethereum staking has gained traction since the introduction of restaking.
Staking Rewards’ data reveals a 9% increase in ETH locked on the network over the past three months, with a significant growth spurt since the start of February.
Restaking and its Impact
EigenLayer, a notable player in the restaking narrative, has also seen a similar growth pattern in its total value locked (TVL), according to DeFiLlama.
Tom Wan, a research analyst at Web3 firm 21.co, disclosed that over 12% of the staked Ether has been restaked, reinforcing the positive impact of restaking on Ethereum staking.
In 2024, EigenLayer surpassed its competitors to become the second-largest DeFi protocol, thanks to its unique offering – Restaking.
Restaking enables the reuse of staked ETH to provide security to applications beyond Ethereum, allowing stakers to earn additional rewards on their deposits.
As the yields from traditional Ethereum staking decline due to increased participation, restaking presents a viable alternative for users to enhance their income.
Ethereum as a Yield-Bearing Asset
The practices of staking and restaking highlight Ethereum’s potential as a yield-bearing asset.
With stable, guaranteed returns, users are beginning to consider Ethereum for long-term investment, rather than seeking short-term gains from market price fluctuations.
Signs of this change in perception can already be seen.
For example, Ethereum’s exchange supply ratio has dropped to multi-year lows, according to an analysis of CryptoQuant data.
This decrease could potentially lead to market scarcity, which, coupled with increasing demand, could positively influence Ethereum’s price.
