TL;DR
- EigenLayer experienced an incredible increase in its Total Value Locked (TVL) following the temporary removal of deposit limits.
- The TVL reached nearly $6 billion, representing a 170% increase since the start of the period without deposit limits.
- Today ends the period of unlimited deposits.
EigenLayer, an Ethereum-based restaking protocol, experienced an incredible increase in its Total Value Locked (TVL) in recent days. This increase occurred following the temporary removal of deposit limits on February 5th.
EigenLayer’s TVL has reached nearly $6 billion, representing a 170% increase since the start of the period without deposit limits, when it was at $2.15 billion. Currently, EigenLayer’s TVL accounts for approximately 2% of the total circulating ether supply, placing it among the top five DeFi protocols by TVL, surpassed only by Lido, Maker, Aave, and JustLend.
EigenLayer allows users to deposit and restake ether through liquid staking tokens, allocating these funds to secure third-party networks and potentially earn additional rewards. The temporary removal of TVL limits was designed to boost organic demand, and many users have been incentivized to participate in the project to earn reward points.
In the Future, EigenLayer Will Permanently Remove the Staking Limit for Ethereum
The temporary lifting of TVL limits will end today at 3 p.m. ET. However, EigenLayer plans to permanently lift the limits in the future, enabling a “permissive and neutral” environment while promoting decentralization.
It is worth noting that EigenLayer has shown steady growth since its launch on the Ethereum mainnet in June 2023. Initially, it allowed users to deposit Liquid Staking Tokens (LSTs) from projects like Lido, Rocket Pool, and Coinbase. Since then, the protocol has expanded its offering to include other LSTs, including sETH from Stakewise, mETH from Mantle, sfrxETH from Frax, ankrETH from Ankr, and wBETH from Binance.
The team behind EigenLayer, known as EigenLabs, closed a $50 million Series A funding round led by Blockchain Capital in March 2023. Additionally, they announced plans to adopt a shared security model, allowing other protocols to join the network by using a collective pool of restaked ether. With this, they aspire to become a significant platform for decentralized applications and facilitate the launch of other projects under this shared security model.
