EigenLayer, an Ethereum-based protocol that allows for the re-staking of ETH from liquid staking providers, has seen enormous growth since its mainnet launch in June 2022. According to an announcement on March 3rd, the total value locked (TVL) in EigenLayer has risen to 2.93 million ETH, valued $10.05 billion at the time of this writing.
This is over a tenfold growth from the $1.1 billion TVL when EigenLayer launched on Ethereum less than a year ago. The rapid ascent is due to continued ether deposits and ether’s rising price in 2023.
EigenLayer intends to pool staked ETH through liquid staking derivatives and assign those assets to protecting third-party networks. The steady inflows from liquid staking platforms such as Lido have propelled EigenLayer’s expansion.
The protocol’s method of restaking Ethereum’s native assets has sparked interest in the expanding liquid staking market. With Ethereum’s widely awaited Shanghai upgrade, which will allow for the withdrawal of staked ETH, decentralized banking apps like EigenLayer are gaining traction among depositors.
Industry observers anticipate innovation in the Ethereum staking environment. EigenLayer’s amazing 10x TVL explosion within eight months of debut offers as one data point to support that prediction.
If usage trends continue, the Ethereum re-staking market is primed for much bigger capital inflows. With deep liquidity serving as the heart of DeFi, EigenLayer’s scaling trajectory appears to be on track to take off as Ethereum evolves.
