EigenLayer on the verge of reaching $7 billion in Total Value Locked (TVL), solidifying its position as the fourth-largest protocol for restaking.
Ethereum’s EigenLayer protocol has surged to become the fourth largest protocol in terms of total value locked (TVL), according to DefiLlama. The protocol’s TVL has reached $6.99 billion, more than tripling from $2.15 billion since February 5, a 307% increase over the past month.
EigenLayer’s TVL started to grow on February 5 after the protocol temporarily removed the staking cap to promote organic growth. During this period, the TVL rose by 181% to $6.05 billion on February 10 from $2.15 billion on February 5. While a new staking limit has been implemented, projects are planning to permanently remove this restriction in the future.
Liquid staking currently holds the top spot in terms of TVL with $42.69 billion, while restaking protocols rank sixth with a total TTL of $6.99 billion, as reported by DefiLlama.
EigenLayer protocol is at the forefront of Ethereum’s restaking movement. Restaking is a novel concept where already staked ETH tokens can be used to secure other key elements of the network, including protocols, Oracle networks, and layer 2 solutions. Market participants can earn additional income with the help of this protocol. The developers also believe that restaking will contribute to increasing the decentralization level of ETH.
The crypto community is eagerly anticipating a possible airdrop from the EigenLayer team, as the project does not currently have a native token.
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