EigenLayer Sees a Surge in User Deposits
EigenLayer has experienced a significant increase in user deposits, surpassing $900 million. This surge can be attributed to the protocol adjusting deposit caps for liquid staking assets.
Protocol Raises Deposit Limits
Until recently, EigenLayer had set a re-staking limit of under 120,000 ETH and had temporarily paused deposits. However, the protocol raised its limit to 500,000 ETH, equivalent to about $1.1 billion. As a result, total deposits have skyrocketed from $250 million to over $900 million.
EigenLayer’s Offering
EigenLayer provides a protocol that allows users to deposit and “re-stake” ether from various liquid staking tokens. These funds are then allocated to secure third-party networks. The protocol’s stage 1 was launched on the Ethereum mainnet in June.
New Supported LSTs
Initially, EigenLayer only supported LSTs from three staking projects: Lido, Rocket Pool, and Coinbase. However, the protocol has expanded its range to include six additional LSTs: Swell’s swETH, Stakewise’s sETH, Stader’s xETH, Origin’s oETH, Ankr’s ankrETH, and Wrapped Beacon Ether (wBETH).
Increase in Activity and Potential Rewards
This expansion in deposit limits and the availability of various LSTs has led to a surge in activity as more users participate in the network and earn points. These points may potentially result in stakers receiving Eigen token rewards in the future.
Deposits Pause at 500,000 Ether Limit
Once EigenLayer reaches the 500,000 ether limit, all user deposits will be temporarily paused.
EigenLabs Funding
In March, EigenLabs successfully closed a $50 million Series A funding round led by Blockchain Capital.
Hot Take: EigenLayer Surges in Deposits and Expands Supported LSTs
EigenLayer has experienced a remarkable increase in user deposits, surpassing $900 million. By raising deposit limits and including additional liquid staking tokens, the protocol has seen a surge in activity. This growth positions EigenLayer to potentially cross $1 billion in deposits and reach its maximum threshold. With its innovative protocol for depositing and re-staking ether, EigenLayer continues to attract users seeking to secure third-party networks. As the network expands and more users earn points, there is speculation about future Eigen token rewards. However, it’s important to note that once the 500,000 ether limit is reached, all user deposits will be paused.
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