Regarding the market failure caused by the recent token issuance of EigenLayer and LRT projects, Haotian, an on-chain researcher, put forward his own views on the field of restaking: He believes that in addition to the market's misunderstanding of the ecological focus, it is more that the EigenLayer team deliberately created The currency lowered airdrop expectations and market sentiment.
This article is compiled and compiled by Lian News. If you have any questions, please refer to the original text.
Why has the re-staking ecosystem cooled down significantly recently?
Recently, neither Ether.fi nor Renzo have maintained market enthusiasm for long after issuing tokens. Instead, the volume of projects and token prices have declined rapidly. EigenLayer has also recently announced the issuance of tokens and airdrops. The market has been very enthusiastic about this field. Interest seems to have dropped even further.
(EigenLayer opens air investment qualification inquiry! The first phase is mainly for re-pledge users, and Pendle will be distributed in the second phase)
Haotian has its own take on this.
Reason 1: The market made a mistake and then pledged the focus of the industry
Haotian believes that the re-pledge industry has experienced a long period of irrational prosperity. From EigenLayer’s points to LST projects such as Ether.fi and Puffer Finance competing for liquidity, they have created a huge new competition and overheated market sentiment.
The market mistakenly regards "whether LRT can accumulate the most liquidity" as the focus of the development of the re-pledge industry. Haotian pointed out that the key to the sustainable development of the re-pledge industry is actually the development of the AVS ecosystem.
Recommended reading: How will the re-staking project EigenLayer change the Web3 infrastructure ecosystem? Reason for recommendation: This article comprehensively explains the design concept of EigenLayer, what problems it solves, and its development status. It allows you to quickly understand the various roles in the ecosystem, including token stakers, node operators, and active verification service provider AVS. What are the differences and needs.
Whether the industrial situation of AVS Network can be opened up and profits can truly be created will be the beginning of the emergence of the value of the re-pledge industry. For example, EigenDA, as the first AVS, can use the security brought by re-staking to attract more projects to use its services and return the revenue to the re-staking ecosystem.
The core of the re-pledge industry is AVS, not the re-pledge project.
Under irrational emotions, the market's expectations and focus are not on the implementation level of AVS. Instead, high expectations are obtained by using LRT narratives to attract traffic and assets, and the industry does not receive long-term effective support.
Reason 2: EigenLayer issued coins just to cool down
EigenLayer recently hastily issued EIGEN tokens and proposed an innovative model for managing intersubjectively attributable faults, which brought a wave of surprises and discussions to the market.
Recommended Reading: EigenLayer Issuance Token How will EIGEN be used to protect AVS security? Reason for recommendation: This article introduces EigenLayer's unique token utility - managing and reducing the risk of attributable errors between subjects, and reducing the rights of malicious participants through the fork function of the EIGEN token.
However, Haotian believes that EigenLayer’s token issuance at this time is actually not only to launch the complete functions of the main network, but also to cool down the market’s recent craze for re-staking and LRT.
If the re-pledge points Lego war is further demonized, the pressure on Eigenlayer will be exponentially amplified. If there is any disturbance in the future development of the relevant ecology, it will trigger chain risks in the re-pledge industry.
The market expectation of Eigenlayer's token issuance will cool down the trend of points wars and allow the market to focus on the ecological development of AVS, the support point of the re-pledge industry, making the system healthier.
Originally, Eigenlayer's re-staking was only to provide basic security capabilities for AVS, but it never occurred to me that it would open a Pandora's box in the LRT field. If not guided and controlled, the false prosperity of re-hypothecation will further amplify the potential liquidity crisis of the Ethereum network.
Cooling-off period helps long-term development
The EigenLayer team chose to issue tokens during this period to cool down the market. On the one hand, it also hopes to allow the market to focus on the AVS ecosystem instead of just the LRT project, all in order to allow the industry to develop more healthily and reduce system risks. .
Although the market seems to lack vitality at this time, we can also look at the development opportunities of the AVS ecosystem. Haotian believes that EigenLayer will allow the security of Ethereum to be extended to more diverse services and infrastructure. For Ethereum, which is developing towards modularization, the potential applications are worth looking forward to.
(SOL version of EigenLayer? The re-staking craze has hit the Solana ecosystem)
This article: Why has re-staking points become less popular recently? On the contrary, is this the intention of EigenLayer to issue coins? First appeared in Chain News ABMedia.
