EigenLayer: A Dominant Force in DeFi
EigenLayer has established itself as a powerful player in the decentralized finance (DeFi) sector, solidifying its position as the fourth-largest protocol by total value locked (TVL), which has reached nearly $7 billion. This significant growth demonstrates the increasing interest in restaking protocols, where validators and stakers use liquid staking derivative coins to enhance network security and validation processes across different blockchains.
The Rise of Restaking
The protocol’s TVL experienced a remarkable surge after the temporary removal of its staking cap, aimed at promoting organic growth. This strategic decision not only bolstered EigenLayer’s TVL, but also highlighted the growing usefulness and adoption of restaking protocols in the DeFi landscape, providing stakers with additional opportunities to generate yield.