TVL approaches $6 billion and secures a spot among the top 5 defi protocols.

EigenLayer’s Total Value Locked (TVL) has surged to nearly $6 billion, representing a 170% increase from $2.15 billion since February 5, according to data from DeFiLlama. This growth, equivalent to approximately 2.3 million ether, accounts for about 2% of the total circulating supply of ether.

The surge in TVL has propelled EigenLayer into the top five defi protocols by TVL, surpassing Uniswap and trailing behind only prominent players such as Lido, Maker, Aave, and JustLend.

EigenLayer’s TVL currently stands at $5.851 billion on DeFiLlama. This significant rise can be attributed to EigenLayer’s decision to temporarily remove deposit caps, which were previously set at 200,000 ether ($500 million) for each liquid staking token.

This decision is part of EigenLayer’s broader strategy to eventually eliminate these caps entirely. The aim is to create a “permissionless, neutral environment while promoting decentralization,” thereby enhancing organic demand and incentivizing participation through reward points and potential Eigen token airdrop rewards.

EigenLayer is a protocol that facilitates the deposit and re-staking of ether through liquid staking tokens. It not only supports the security of third-party networks but also offers users the opportunity to earn additional rewards.

Since its inception in June 2023, EigenLayer has expanded its offerings of liquid staking tokens, with contributions from major staking projects and a $50 million Series A funding round led by Blockchain Capital in March 2023.

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