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Post: Ethereum Restaking Protocol EigenLayer Becomes Fourth-Largest by TVL

Ethereum Restaking Protocol EigenLayer Becomes Fourth-Largest by TVL

Key Points:

  • Ethereum restaking protocol EigenLayer has become the fourth-largest protocol by total value locked (TVL).
  • EigenLayer’s TVL rose 5.73% on Feb. 15, reaching $6.99 billion.
  • EigenLayer’s TVL has increased by 47.95% in the past seven days and 307% over the past month.
  • The protocol temporarily removed its staking cap, which resulted in significant growth in TVL.
  • While a new staking cap has been implemented, the project plans to permanently remove this limit in the future.

Elaboration:

EigenLayer, an Ethereum restaking protocol, has experienced significant growth in its total value locked (TVL) and has now become the fourth-largest protocol in terms of TVL. On February 15, the TVL of EigenLayer reached $6.99 billion, showing a 5.73% increase. Over the past seven days, the TVL has increased by 47.95%, and over the past month, it has seen an impressive 307% growth, according to DefiLlama data.

The growth in EigenLayer’s TVL started on February 5, when the protocol temporarily removed its staking cap. This move was intended to incentivize organic growth. During the re-staking window, the TVL of EigenLayer rose by 181%, reaching $6.05 billion on February 10, compared to just $2.15 billion on February 5. Although a new staking cap has been implemented, the project plans to permanently remove this limit in the future.

Hot Take:

The significant increase in EigenLayer’s TVL following the removal of its staking cap highlights the demand and interest in restaking protocols. By removing the limit on staking, EigenLayer has attracted more users and locked in a substantial amount of value. This growth demonstrates the potential of restaking protocols in the decentralized finance (DeFi) ecosystem and their ability to incentivize participants to hold and stake their cryptocurrencies.

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