Key Points
- Ethereum’s restaking protocol, EigenLayer, has surpassed $10 billion in Total Value Locked (TVL).
- EigenLayer’s growth is attributed to support from reputable institutional investors and the rise of Ethereum’s Web3 platforms.
The Ethereum network has seen massive growth, becoming a significant Web3 ecosystem with over $53 billion in TVL and a stablecoins market cap of more than $73 billion. This growth is largely due to the widespread adoption of Ethereum’s Web3 platforms, led by decentralized exchange Uniswap (UNI), Lido DAO (LDO) staking platform, AAVE lending protocol, and EigenLayer, a liquid restaking platform.
The price of Ethereum has closely mirrored Bitcoin’s price in the current bull market.
Exponential Growth of EigenLayer
The Ethereum network has seen significant growth since its transition from the Proof-of-Work (PoW) to the Proof-of-Stake (PoS) consensus mechanism through the merge event and the Shanghai upgrade. Currently, more than 31 million Ether, valued at over $108 billion, has been staked through various programs.
EigenLayer protocol, backed by Eigen Labs established in 2021, supports Ether restaking on the consensus and settlement layers. The platform supports various staked Ether forms, including Staked Frax Ether (sfrxETH), Mantle Staked Ether (mETH), Stader Staked Ether (ETHx), Liquid Staked Ether (1sETH), Swell Staked Ether (swETH), Origin Staked Ether (oETH), and Binance Staked Ether (wBETH), among others.
EigenLayer’s TVL has grown from less than $300 million in December of the previous year to around $10.3 billion at present. This growth is largely due to support from reputable institutional investors.
In the middle of the previous month, Eigen Labs, the core development team contributing to EigenLayer and EigenDA, successfully raised $100 million from leading Web3 investor a16z crypto in a series B funding round. The company had previously announced a $50 million series A funding round led by Blockchain Capital in March of the previous year.
Increasing Interest from Web3 Developers
The mainstream adoption of digital assets and Web3 platforms has led to a significant cash inflow into crypto investment products. According to on-chain data analytics provided by Glassnode, over $48 billion has entered the crypto space in the past 30 days, marking the highest inflow since October 2021.
In recent months, EigenLayer has attracted attention from various Web3 protocols building liquid restaking on the Ethereum network. Essentially, Ethereum restaking allows validators to use already staked Ether to secure new projects, thereby earning additional staking rewards.
According to Sreeram Kannan, the founder and CEO of EigenLayer, the restaking program expands the capabilities of the Ethereum network. More Web3 developers are eager to build on the Ethereum network as it allows them to tap into a pool of validators, which is economically viable. Earlier this year, the EigenLayer team announced the strategic integration of Ethereum and Cosmos networks to further enhance multichain security.
