EigenLayer Temporarily Lifts Staking Cap, Witnesses $1B Surge in TVL
- EigenLayer temporarily removed 200,000 ETH per protocol staking limit until February 9.
- The networks TVL jumped from around $2.5B to $3.74B as per data from DefiLlama.
EigenLayer, an Ethereum-based liquid restaking protocol, temporarily lifted its staking cap 14 hours ago, and since then, the total-value locked (TVL) has increased by a whopping $1 billion.
In an effort to invite organic demand to the network, EigenLayer stated on February 5 that it will temporarily remove its 200,000 Ether (ETH) per protocol staking limit until February 9. This interim abolition is paving the way to a future when all staking limits are eliminated permanently, according to the protocol.
According to statistics from DefiLlama, investors poured their liquid-staked Ethereum tokens into the protocol in the few hours after the announcement, causing the networks TVL to jump from around $2.5 billion to $3.74 billion. The astonishing $1.6 billion gain last week was underscored by this enormous surge.
Lido Staked ETH Dominates
Staking Ethereum tokens (ETH) to secure other networks is one way for investors to increase the return on their ETH holdings using the EigenLayer protocol. At the moment, EigenLayer is compatible with liquid staking tokens like stETH (Staked Ethereum) from Lido DAO and swETH (Swell Stated Ether).
With over $1.2 billion in EigenLayer TVL, Lido Staked ETH is now the most restaked token on the platform. With $392 million in TVL, Swell Staked ETH ranks second on the protocol.
Tokens may be locked up and used for validation, lending, and liquidity on other blockchain networks via a process called restaking, which attracts investors. Both developers and market analysts have voiced skepticism of the protocols approach comparing large-scale restaking to leverage.
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Read more: https://thenewscrypto.com/eigenlayer-temporarily-lifts-staking-cap-witnesses-1b-surge-in-tvl/
Text source: TheNewsCrypto – Blockchain & Cryptocurrency News M
