EigenLayer Surpasses Competitors, Ranks 4th in Restaking Protocols with Nearly 7 Billion Dollars TVL

Crypto News- EigenLayer, an Ethereum restaking protocol, has recently claimed the spot as the fourth-largest protocol in terms of total value locked (TVL), surpassing the well-known cryptocurrency lending platform, JustLend.

As of February 15th, EigenLayer’s TVL has seen a remarkable 5.73% surge, reaching a staggering $6.99 billion. Impressively, over the past seven days, the protocol’s TVL has soared by 47.95%, and within the last month alone, it has experienced an astounding growth of 307%, according to data sourced from DefiLlama.

EigenLayer Surpasses Competitors, Ranks 4th in Restaking Protocols with Nearly 7 Billion Dollars TVL

This surge in TVL for EigenLayer commenced on February 5th, following the protocol’s strategic decision to temporarily eliminate its staking cap, aiming to foster organic growth. During this period, EigenLayer witnessed an extraordinary surge of over 181% in TVL, skyrocketing from $2.15 billion on February 5th to $6.05 billion by February 10th. Although a new staking cap has been implemented, the project intends to permanently remove this limitation in the future.

Restaking protocols like EigenLayer play a crucial role in enabling validators and stakers to restake liquid staking derivative tokens, such as Lido Staked ETH and RocketPool’s rETH, to validate and secure other networks. Moreover, these assets can be utilized within other decentralized finance (DeFi) protocols to generate additional yield.

Despite liquid staking currently dominating as the largest protocol category with $42.69 billion in TVL, restaking protocols hold a significant position, ranking sixth with a combined TVL of $6.99 billion, as reported by DefiLlama.

Notably, one out of every four Ethereum validators has opted to set their withdrawal credentials to EigenPod in the 30 days leading up to February 9th, as highlighted in a post by Brianna Montgomery, EigenLayer’s strategy lead.

The surge in interest in staking protocols began in January, particularly after EigenLayer crossed the $1 billion TVL milestone on December 28th, 2023. Currently, there are a total of 108,574 depositors on the protocol, as indicated by data from Dune. EigenLayer currently boasts holding over 1.52 million Ether tokens.

Excitingly, EigenLayer has plans underway to soon launch its mainnet for operators, offering investors the opportunity to operate a staking node. Additionally, the protocol is gearing up for the launch of EigenDA, a decentralized data availability service built on Ethereum, as revealed in a February 9th announcement on X.