How EigenLayer Increases ETH Stake
Journalist
- EigenLayer is the second most popular DeFi protocol as of the date of this article.
- The exponential growth of EigenLayer has led to the rise of Ether.fi and other projects.
EigenLayer’s growth since 2024 is nothing short of historic.
AskFX examined DeFiLlama’s data and found that the restaking protocol saw a staggering 11-fold increase in total value since January 1st. DeFi, currently the second largest project, was not even on the top 10 list at the beginning of 2024.
Restaking>>Staking
Restaking is one of the most popular new DeFi narratives. This involves repurposing staked Ethereum to extend security to another application and allow stakers to earn additional rewards for their investment.
Users can also stake liquid derivatives (LSD) of their staked assets, such as those offered by Lido. [LDO]Rocket Pool and Coinbase.
According to a recent
Source: IntoTheBlock
ETH staking has surged
The broader ETH staking markets also appeared to be boosted by the hype around EigenLayer.
AskFX analyzed the Staking Rewards data and found that more than 26% (of total ETH) in circulation at the time of publication was tied to the network’s deposit contract.
Interestingly, the growth curve was similar to EigenLayer’s TVL increase last month.
Source: Staking Rewards
Native ETH restaking is gaining traction
EigenLayer’s exponential growth led to the creation of new business models aimed at transforming the restaking industry open up.
Ether.fi, for example, has introduced the so-called native restaking concept. ETH is tied to the protocol, which is then automatically transferred back to EigenLayer.
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. This is not the same as traditional restaking, where users deposit ETH they have already staked onto EigenLayer.
Like Eigenlayer, Ether.fi also experienced meteoric growth in 2024. His TVL has increased 19x in the last year.
