TVL EigenLayer Approaches 1 Billion USD after Staking Upgrade

TVL EigenLayer approaches 1 billion USD after staking upgrade

After expanding the limit for liquid staking pools, the Total Value (TVL) of EigenLayer has increased dramatically in the past day. The current figure is 436,570 ETH (approximately 950 million USD), an increase of nearly four times compared to just a few days ago.

📣 Attention, restakers!

Global LST caps raised to 500k ETH! Exciting news as 6 LSTs join the EigenLayer ecosystem. pic.twitter.com/y4RNUH6zXL

— EigenLayer (@eigenlayer) December 18, 2023

On the evening of December 18, 2023 (UTC), EigenLayer began expanding “capacity” for a number of existing staking pools, including stETH (Lido), stETH (Rocket Pool) and cbETH (Coinbase). At the same time, the project also opened 6 additional LSTs:

swETH (Swell)
sETH (Stakewise)
xETH (Stader)
oETH (Origin)
ankrETH (Ankr)
wBETH (Wrapped Beacon Ether)

Restaking pools are available on EigenLayer

From 120,000 ETH, the project has increased the limit to 500,000 ETH (about 1.1 billion USD) for all LST staking. The pools were then quickly filled, bringing the protocol’s total value locked (TVL) from $250 million to the $1 billion mark.

EigenLayer’s TVL fluctuations by month. Source: Defi LIama

Most users want to accumulate more activity points to increase the possibility of receiving airdrops from both Eigen as well as the projects opening pools above. EigenLayer will stop all user deposits once the total pools reach the limit of 500,000 Ethereum.

Don’t sleep on swETH on @EigenLayer! 🌊

Mint swETH for a 30 Pearl bonus, then restake for another 30 Pearls and hold to earn Pearls and EigenLayer Points continuously! 💎https://t.co/IbtJ3I2eQj https://t.co/0B5DHDn6iT

— Swell (@swellnetworkio) December 19, 2023

EigenLayer has become famous as a protocol that allows users to lock and restake ETH from various liquid staking tokens. This platform officially launched its mainnet in June this year, and the managing company successfully raised a Series A round of capital worth 50 million USD in March 2023. Initially, EigenLayer only set limits for liquid staking and native staking services at 3,200 and 9,600 ETH.

Restaking is a new mechanism, only appearing since June this year, and EigenLayer has pioneered this model. To put it simply, restaking is a process that allows ETH stakers to reuse locked ETH to increase the security of other protocols.