EigenLayer Emerges as the 5th Largest DeFi Protocol with $4 Billion Inflows
Liquid restaking platform EigenLayer has seen an influx of over $4 billion, making it the 5th largest decentralized finance (DeFi) protocol. The removal of the staking cap has contributed to this surge, with the total value locked (TVL) reaching $10 billion, a significant increase from $350 million in December.
$4 Billion Worth Of Fresh Inflows
EigenLayer’s decision to remove the staking cap has resulted in a massive inflow of funds, catapulting it to the 5th spot among DeFi platforms. Within hours of lifting the cap, over $1 million worth of ETH flowed into EigenLayer, raising its TVL to an astonishing $3 billion. The restaking window closure also contributed to an additional $600 million increase in TVL due to rising asset prices.
EigenLayer’s Current TVL
Currently reporting a TVL of $6.6 billion, EigenLayer has experienced a monumental $6.5 billion increase in TVL in just a couple of months. The protocol has various assets locked, including $1.9 billion worth of wrapped ether (WETH) tokens and $2.7 billion worth of staked ETH (stETH).
EigenLayer supports liquid staking tokens from multiple projects such as Lido, Rocket Pool, Stakewise, Mantle, Frax, Ankr, and Binance.
A Surge Across DeFi
This rise in EigenLayer’s TVL reflects a broader surge in the DeFi sector, with the total capital locked in DeFi protocols reaching $71 billion. Restaking protocols have played a crucial role in this growth, resulting in a significant increase in capital. Platforms like ether.fi and Puffer Finance have witnessed substantial growth, with TVL across liquid restaking platforms skyrocketing from $350 million in December to $10 billion currently.
Conclusion
The removal of EigenLayer’s staking cap has sparked a wave of fresh inflows, propelling the platform to become the 5th largest DeFi protocol. With a staggering total value locked and support for various liquid staking tokens, EigenLayer has solidified its position in the market. This surge in EigenLayer’s TVL mirrors the wider growth in the DeFi sector, reaching its highest point since June 2022. Restaking protocols, including EigenLayer, have played a vital role in driving this growth, resulting in a substantial increase in capital across liquid restaking platforms.
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