#Write2Earn‬ #EigenLayer Surges as Fifth Largest #DeFi Protocol with $4 Billion Influx #ethereumRestaking #restaking $ETH

EigenLayer, a prominent liquid restaking platform, has surged to become the fifth-largest decentralized finance (DeFi) protocol, witnessing a significant influx of over $4 billion following the elimination of the staking cap.

The capital locked in restaking protocols has soared to an astounding $10 billion, a remarkable increase from a mere $350 million recorded in December.

With the recent injection of $4 billion, EigenLayer has solidified its position as the fifth-largest DeFi platform. The decision to abolish the staking cap, announced on February 5th, propelled a surge in inflows, aiming to stimulate organic demand, as highlighted in EigenLayer's blog post. This move triggered a swift and substantial response, with over $1 million worth of ETH pouring into EigenLayer within hours of lifting the staking cap, catapulting its total value locked (TVL) to an impressive $3 billion.

The restaking period concluded on February 10th, witnessing a further $600 million surge in TVL attributed to escalating asset prices.

EigenLayer presently reports a TVL of $6.6 billion, marking a staggering surge of $6.5 billion over the past few months. Notably, data from DeFiLlama reveals that the assets currently locked on the protocol include 469,870 wrapped ether (WETH) tokens valued at $1.9 billion, along with an additional $2.7 billion worth of staked ETH (stETH).

EigenLayer supports various liquid staking tokens, including Lido-staked ETH (stETH) and Rocket Pool ETH (RETH), wherein platforms such as Lido and Rocket Pool stake ETH on behalf of users, issuing liquid staking tokens representing the stake and accruing interest.

Originally launched on the Ethereum mainnet in June 2023, EigenLayer initially supported liquid staking tokens from three projects: Lido, Rocket Pool, and Coinbase. Subsequently, EigenLayer expanded its offerings to include tokens from Stakewise, Mantle, Frax, Ankr, and Binance.