Glassnode Unveils Exciting Yield Opportunities for Ethereum Community through Restaking
Glassnode recently conducted an analysis on the impact of the growing trend of restaking protocols on Ethereum’s role as a monetary asset. The introduction of the EigenLayer and LRT staking protocols has resulted in ETH’s share of staking increasing to 26% of the total supply. Furthermore, the overall growth in coins staked has reached 31.4 million Ethereum as of April 13th.
Glassnode suggests that despite the decrease in non-validator rewards due to the increase in ETH, the total rewards paid could still contribute to inflation if there is a significant amount of locked assets. Following the merge, the share of new coins in the total Ethereum supply has risen to 1.01%, while approximately 3.55% of ETH has been withdrawn from circulation.
As a result of this increase, the remuneration level for ensuring network security per validator has dropped to 3.2% per year. Additionally, experts have noted that innovations such as MEV, liquid staking, restaking, and liquid restaking have led to a higher demand for staking beyond its original purpose. Liquid restaking protocols account for 27% of the coins sent to the deposit contract.
With more ETH being staked, the effects of inflation are impacting a smaller number of asset holders. This means that there is a transfer of wealth to participants who generate additional income by maintaining the network’s security. However, experts have warned that over time, the real yield component could make owning ETH less appealing and undermine its function as a monetary asset in the Ethereum ecosystem.
Restaking allows users to stake their assets multiple times on the main blockchain and other protocols. The restaking sector has been experiencing significant growth since the beginning of the year. In early April, the total value locked in restaking protocols surpassed $8 billion, with ether.fi leading the way with $3.2 billion.
Overall, the rise of restaking protocols and the increase in staked ETH have implications for Ethereum’s position as a monetary asset. While it currently brings benefits to participants, there may be challenges in the long run that could affect its attractiveness as a store of value within the Ethereum ecosystem.
