EigenLayer had grown by over 1,335% by June due to steady deposits and a rising Ether price.
By Bena Ilyas
Edited by Julia Sakovich
Updated
2 mins read
The decentralized finance (DeFi) space reached a significant milestone when EigenLayer, a top restaking protocol, hit $20.09 billion in total value locked (TVL) on June 6, 2024. This achievement puts EigenLayer as the second-largest DeFi protocol, just behind Lido in terms of locked value. At the start of the year, EigenLayer had $1.4 billion in TVL. By June, it had grown by over 1,335%. This rapid increase is due to a steady stream of deposits and a rising Ether price. In March 2024 alone, EigenLayer had 2.93 million ether locked, valued at $10 billion.
EigenLayer launched its mainnet on April 9, 2024, introducing a novel staking approach. Users can deposit ether and various liquid staking tokens to enhance the security of third-party networks. This innovative model generated significant interest, leading to a surge in deposits after the announcement of its token distribution plan.
However, the initial excitement was soon met with community backlash. The primary concerns were about the perceived low individual airdrop allocations, possibly due to a linear distribution model, and the initial non-transferability of the tokens.
So EigenLayer team and investors are getting 55% but stakers are getting only 5% and even that will not be transferable at the beginning.
— CoinMamba (@coinmamba) April 29, 2024
The amount of greed crypto developers and VCs are exhibiting just keeps suprising me every time..
The Eigen Foundation quickly addressed these concerns by expanding airdrop allocations for all users and providing a clear roadmap for token unlocks and transferability. These actions effectively mitigated community concerns, renewing confidence and increasing inflows.
EigenLayer experiences a notable deposit surge on May 31, 2024, with over half a billion dollars deposited on the platform in a single day. This surge highlights the restored trust and growing user base of EigenLayer.
EigenLayer’s underlying technology leverages a shared security model. This innovative approach allows third-party applications, known as actively validated services (AVSs), to integrate with the platform. By leveraging the collective pool of re-staked ether, AVSs gain access to robust security measures without the need for independent infrastructure.
This collaborative approach makes EigenLayer a significant player in the future of DeFi. As the platform evolves and attracts more users and AVSs, its influence on the DeFi ecosystem will grow. With its rapid growth and focus on user-centric solutions, EigenLayer is set to become a leader in DeFi.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
With over 3 years of crypto writing experience, Bena strives to make crypto, blockchain, Web3, and fintech accessible to all. Beyond cryptocurrencies, Bena also enjoys reading books in her spare time.
