EigenLayer, a restaking protocol on the Ethereum network, has now become the fourth-largest protocol by total value locked (TVL), surpassing JustLend, a cryptocurrency lending protocol. According to DefiLlama data, EigenLayer’s TVL has increased by 5.73% to $6.99 billion on Feb. 15. Over the past seven days, the TVL has risen by 47.95%, and over the past month, it has increased by 307%.
EigenLayer’s TVL began to rise on Feb. 5 when the protocol temporarily removed its staking cap in order to encourage organic growth. During this period, the TVL surged by over 181%, reaching $6.05 billion on Feb. 10 from $2.15 billion on Feb. 5. Although a new staking cap has been implemented, the project plans to remove this limit permanently in the future.
Restaking protocols like EigenLayer allow validators and stakers to restake liquid staking derivative tokens, such as Lido Staked ETH and RocketPool’s rETH, to secure and validate other networks. These assets can also be utilized in other decentralized finance (DeFi) protocols to earn additional yield. According to DefiLlama, restaking protocols currently hold the sixth position in terms of TVL, with a combined value of $6.99 billion, while liquid staking holds the top position with $42.69 billion in TVL.
EigenPod, a feature of EigenLayer, has gained significant popularity among Ethereum validators. In the 30 days leading up to Feb. 9, one out of every four validators set their withdrawal credentials to EigenPod, as reported by Brianna Montgomery, the strategy lead at EigenLayer.
Interest in staking protocols has been increasing since EigenLayer surpassed $1 billion in TVL on Dec. 28, 2023. As of Feb. 15, there are a total of 108,574 depositors on the protocol. EigenLayer currently holds over 1.52 million Ether tokens.
EigenLayer has plans to launch its mainnet for operators soon, allowing investors to operate a staking node. Additionally, the protocol is preparing to launch EigenDA, a decentralized data availability service built on Ethereum, as announced on Feb. 9.