EigenLayer is a closely pledged protocol primarily based on Ethereum that has surpassed Uniswap, crucial decentralized alternate (DEX) on the Ethereum community, in whole worth locked (TVL).
Information from DeFillama reveals that EigenLayer has change into the best-performing decentralized finance (DeFi) protocol over the previous month. Previously seven days alone, its TVL has surged 171% to $5.67 billion, making it the fifth largest DeFi protocol.
As compared, Uniswap’s TVL elevated barely by 6% throughout the identical interval, reaching $4.31 billion. Different well-known DeFi protocols, equivalent to Lido, Aave, and Maker, have additionally skilled comparatively modest development charges of lower than 10%.
In the meantime, EigenLayer’s speedy development has come as ETH staking has grown to an all-time excessive of over 29 million tokens, regardless of the current sell-off by defunct cryptocurrency lender Celsius, in accordance with information shared with Nansen. Encryption Slate.
Why is EigenLayer TVL proliferating?
EigenLayer’s surge will be attributed to the reopening of its vault deposits on February 5.
Since then, ETH holdings on the platform have soared from 941,000 to 2.3 million inside per week, a major improve. This influx represents roughly 2% of the entire circulating Ethereum quantity at the moment staked by way of the platform.
Blockchain analytics firm SpotOnChain stories that the highest 4 retryers on EigenLayer are Puffer Finance, Tron community founder Justin Solar, Eigenpie and Kelp DAO. Puffer Finance leads the best way with 233,600 ETH in re-pledges, adopted by Solar with roughly 109,300 ETH, adopted carefully by Eigenpie and Kelp DAO, with 88,600 ETH and 75,300 ETH respectively.
What’s a function layer?
EigenLayer dominates the closely collateralized market and has attracted important consideration from the crypto group. Beginning in June 2023, the DeFi protocol will step by step improve deposit limits by way of a phased launch technique.
ETH re-staking has change into one of many main subjects within the cryptocurrency market because it permits buyers to earn extra rewards for staked ETH. The protocol helps common liquid staking tokens equivalent to Lido-Staked ETH (stETH) and Rocket Pool ETH (RETH) by way of its platform.
DeFi Collective contributor Murathan famous that native restaking is more and more common amongst ETH validators. He stated:
“1 out of each 4 validators coming into the Ethereum validator queue has their withdrawal credentials set to EigenPod.”
Nonetheless, some group members warned that the mannequin might create a Ponzi scheme that will quickly collapse.
