The total locked value (TVL) of Ethereum’s liquid re-staking protocols increased by 6,000% in 2024. According to DefiLlama data on January 1, Ethereum’s liquid re-staking TVL was approximately $284 million. By the end of the year, this amount had increased by approximately 60 times to $17.26 billion.

This increase can be attributed to the benefits provided by liquid re-staking tokens (LRTs). LRTs simplify the complexities of traditional Ether (ETH) staking and increase capital efficiency in DeFi.

LRTs are built on the foundation of liquid staking tokens (LSTs). LRTs can be used to secure application-specific blockchains or layer-2 networks while preserving the liquidity of the staked assets.

While these assets offer flexibility, they also carry risks, such as the price volatility of derivative tokens. A network failure can negatively impact the re-staking assets.

Ether.fi has a 50%+ share of the LRT market. According to DefiLlama, the protocol has $9.17 billion in re-staking assets. Its user-friendly model has contributed to the protocol’s success.

What do you think about these developments? We look forward to your comments.