EigenLayer’s Asset Deposits Soar to $10 Billion, Fueling Ethereum’s Security and Beyond

EigenLayer’s Asset Deposits Soar to $10 Billion, Fueling Ethereum’s Security and Beyond

Crypto News – The total value of assets entrusted to EigenLayer has surged nearly tenfold from $1.1 billion year-to-date, reaching an impressive $10 billion as of the latest update, encompassing approximately 2.93 million ether.

EigenLayer introduces a groundbreaking protocol allowing users to deposit and “re-stake” ether from a variety of liquid staking tokens, with the intention of subsequently allocating these funds to fortify third-party networks.

This remarkable surge can be attributed in part to the sustained influx of ether deposits onto EigenLayer, primarily facilitated through liquid restaking protocols, coupled with the upward trajectory of ether’s market value. Notably, the protocol’s stage 1 was inaugurated on the Ethereum mainnet in June 2023. Within a mere eight months, the protocol’s Total Value Locked (TVL) soared to over $6 billion by February.

At present, only native restaking with EigenPod is operational.

The cornerstone of the protocol’s strategy lies in harnessing the economic security of ETH by accepting native ETH—directly restakable by Ethereum validators—as well as liquid staked ETH from liquid staking protocols. This mechanism, known as restaking, is poised to fortify other protocols, although this functionality has yet to be activated.

EigenLabs successfully concluded a $50 million Series A funding round in March 2023, spearheaded by Blockchain Capital. Notably, in the previous month, Andreessen Horowitz led the Series B round, injecting a substantial $100 million into EigenLayer.