EigenLayer Surges Past Uniswap in Total Locked Value (TVL)
EigenLayer, an Ethereum-based restaking protocol, has surpassed Uniswap in terms of total locked value (TVL) on the Ethereum network, according to data from DeFillama. The protocol has emerged as the top-performing decentralized finance (DeFi) protocol over the past month, with its TVL skyrocketing by 171% in the last seven days alone, reaching $5.67 billion. In contrast, Uniswap saw a modest 6% increase in TVL, reaching $4.31 billion during the same period.
Other Prominent DeFi Protocols Experience Modest Growth Rates
While EigenLayer has experienced significant growth, other prominent DeFi protocols, such as Lido, Aave, and Maker, have seen comparatively modest growth rates of less than 10%. This highlights EigenLayer’s strong performance and position as a leader in the DeFi space.
Rapid Increase in EigenLayer’s TVL Amidst Staked ETH Growth
EigenLayer’s rapid increase in TVL comes as staked ETH reaches an all-time high, with over 29 million tokens being staked. This growth is notable, especially considering the recent selloff by the defunct crypto lender Celsius. The increase in staked ETH has further contributed to EigenLayer’s rise as a leading DeFi protocol.
The Reopening of EigenLayer’s Vault Sparks Surge in TVL
The surge in EigenLayer’s TVL can be attributed to the reopening of its vault on Feb. 5 for deposits. Since then, ETH holdings on the platform have increased significantly, from 941,000 to 2.3 million within a week. This influx represents around 2% of Ethereum’s total circulating supply staked through EigenLayer.
Top Restakers on EigenLayer Drive Growth
According to blockchain analytics firm SpotOnChain, the top four restakers on EigenLayer are Puffer Finance, Tron’s network founder Justin Sun, Eigenpie, and Kelp DAO. Puffer Finance leads the group with 233,600 ETH restaked, followed by Justin Sun with approximately 109,300 ETH. Eigenpie and Kelp DAO trail closely, having restaked 88,600 ETH and 75,300 ETH respectively. The participation of these prominent entities further validates EigenLayer’s appeal and growth potential.
EigenLayer Dominates the Restaking Market
EigenLayer has established itself as the dominant player in the restaking market, attracting significant attention from the crypto community. Since its launch in June 2023, the protocol has gradually increased its deposit limit through a phased launch strategy. ETH restaking has gained popularity as it allows investors to earn extra rewards on their staked ETH. EigenLayer supports popular liquid staking tokens such as lido-staked ETH (stETH) and rocket pool ETH (RETH) restaking via its platform. While the protocol has gained immense popularity, there are concerns among some community members about the potential risks associated with a model that relies heavily on restaking.
Analyst comment
Positive news. As EigenLayer surpasses Uniswap in TVL, its strong performance and position as a leader in DeFi are highlighted. The rapid increase in EigenLayer’s TVL, fueled by staked ETH growth and the reopening of its vault, has contributed to its dominance in the restaking market. The participation of prominent entities validates its appeal and growth potential. However, there are concerns about the potential risks associated with a restaking-heavy model.
