EigenLayer Surpasses $20 Billion in Total Value Locked, Becomes Second-Largest DeFi Protocol

EigenLayer, a restaking protocol, has achieved a milestone by surpassing $20.09 billion in total value locked (TVL), positioning itself as the second-largest decentralized finance (DeFi) protocol after Lido. According to data from The Block, the protocol's TVL has soared from $1.4 billion at the start of the year to $20 billion, equivalent to 5.21 million ether.

The surge in TVL can be attributed to increased inflows and a surge in the price of ether. At the onset of March, EigenLayer's TVL stood at 2.93 million ether, valued at $10 billion. Since then, the protocol has witnessed remarkable growth.

EigenLayer facilitates users to deposit ether and various liquid staking tokens to support the security of third-party networks. Its mainnet was launched in April to provide a robust staking infrastructure.

Following its token distribution plan, the protocol experienced a notable influx of deposits, although there was a brief period of outflows due to community dissatisfaction with the initial airdrop allocations and token transfer restrictions. However, the Eigen Foundation addressed these concerns by increasing airdrop allocations for all users and providing clarity on token unlocks and transferability timelines, leading to renewed confidence and increased inflows.

May 31 saw a significant spike in deposits, with over half a billion deposited on the platform, as per The Block's daily net flow data.

Eigen Foundation has allocated 15% of its 1.6 billion token supply for user distribution across multiple stakedrop seasons, with 5% already allocated as of March 2024. The protocol is currently in its second stakedrop season.

Employing a shared security model, EigenLayer enables third-party applications, known as actively validated services, to secure themselves by leveraging a collective pool of re-staked ether.

Disclaimer: The Block is an independent media outlet providing news, research, and data. As of November 2023, Foresight Ventures holds a majority stake in The Block and invests in various crypto companies. Bitget, a crypto exchange, serves as an anchor LP for Foresight Ventures. Despite these investments, The Block operates independently to deliver unbiased information about the crypto industry. Financial disclosures are available.

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