#ChartoftheDay The market’s enthusiasm for liquid #restaking is waning significantly. As a critical DeFi provider in the liquid #staking sector, Pendle's TVL boomed earlier this year by providing exposure to multiple Eigenlayer-focused LRTs. However, #Pendle ’s TVL saw a 40% decrease in the last several weeks as multiple LRT market products with high APY hit maturity.

Liquid restaking seems to be the only buzzword and narrative associated with the Ethereum ecosystem this year. Pioneered by Eigenlayer, restaking added new use cases for Ether and received significant interest in both the primary and secondary markets. In the primary market, #LRT projects completed raises with high valuations. On the secondary market, LRT tokens, including Pendle, make all-time highs in token prices.

However, under the current market conditions, financial incentives are the key driver for users. As many LRT projects’ airdrops and point programs have ended, users are withdrawing liquidity from the sector to seek other incentives.

The restaking sector faces challenges from the current lull period of the #Ethereum ecosystem and sustainability risks due to the loss of high APY opportunities.