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Ethereum Staking Protocol EigenLayer Sees Record Total Value Locked (TVL)

The staking/restaking protocol based on Ethereum, EigenLayer, has seen a spectacular increase in its Total Value Locked (TVL), flirting with $6 billion after temporarily raising its deposit cap. This initiative has catapulted EigenLayer to be among the top five protocols in terms of TVL, according to on-chain data. Currently, the protocol’s TVL stands at $5.95 billion, tripling its value in just five days.

Impressive Interest in Ethereum Restaking

This impressive growth positions EigenLayer ahead of industry giants such as Uniswap, Spark, and Compound in TVL rankings. A significant portion of this TVL comes from major holdings in stETH, swETH, and mETH, which are respectively sourced from Lido, Swell, and Mantle, alone representing approximately $3.5 billion.

EigenLayer sets itself apart from many competitors by not having a native token, preferring to secure its network through an open market. This model allows validators to participate in any Actively Validated Service (AVS), securing the network through smart contracts linked to their staked assets. At the same time, this absence of a native token leaves many speculators waiting for an airdrop, attracting the famous ‘airdrop farmers’.

Innovations and Implications for the Staking Ecosystem

The temporary removal of TVL caps, initially introduced to prevent market domination by a single token, marks a key moment for the staking ecosystem. Amitej Gajjala, a central figure at Kelp DAO, sees this development as excellent news for the ecosystem.

This is another step towards equal opportunities for all depositors and the maintenance of credible neutrality.

Amitej Gajjala

This strategic decision by EigenLayer provides a glimpse into the potential landscape post its mainnet launch, promising enhanced interactions between restakers and AVS.

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