EigenLayer’s TVL Declines As Restaking Hype Settles, But Liquidity Remains Strong

The initial buzz surrounding restaking protocols has cooled off, with Total Value Locked (TVL) stabilizing at $15 billion, down from its peak of $21 billion.

Despite the dip, EigenLayer continues to dominate the market, holding over 80% of the total TVL.

The initial restaking hype has settled, with TVL across restaking protocols stabilizing around $15B, down from its $21B peak. @eigenlayer continues to dominate, holding over 80% of the total.

What do you think is next the restaking space? pic.twitter.com/4QEeGirch7

— IntoTheBlock (@intotheblock) September 24, 2024

EigenLayer is a pioneering platform that introduced the concept of Restaking, allowing users to reuse staked ETH or Liquid Staking Tokens (LSTs) from other platforms to earn additional rewards. By enhancing protocol security, this mechanism enables stakeholders to double their yield, making it an attractive option for many.

However, following two airdrops, EigenLayer saw a significant outflow of funds, leading to a sharp drop in TVL from $20.1 billion to $11.8 billion. Daily Active Users (DAU) also declined, fluctuating between 3,000 and 6,000. Nonetheless, DAU recently surged to 8,200, signaling a potential recovery.

Several factors contributed to the decline in TVL:
– The launch of restaking tokens has reduced airdrop profitability, making them less appealing.
– Increased competition from new protocols like Symbiotic and Karak.
– The introduction of the $ETH ETF has diverted investor attention to traditional Ethereum staking.

Despite these challenges, EigenLayer’s current TVL stands at $12.2 billion, positioning it as the third-largest protocol by TVL, behind Lido and AAVE.

#EigenLayer launch is coming. The hype is real.

+ $12.2b in TVL
+ Airdrop confirmed

'Restaking primitive' will ignite the coming bull?

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