EigenLayer Restakes Nearly 50% of LST

Recent data shows that 48% of all minted Liquid Staking Tokens (LST) are currently re-staked in Eigenlayer, indicating a high activity level among LST holders in the restaking protocol.

Data from IntoTheBlock shows the percentage of LST being restaked in EigenLayer almost doubled from early April to early June, showing a growing restaking trend among LST holders.

EigenLayer LST
Source: IntoTheBlock

EigenLayer Leading Restaking Trend

The restaking trend is mainly fueled by the potential of amplifying staked assets through multiple yield-bearing activities across several protocols (and in different blockchain ecosystems). At the core of restaking are liquid staking tokens (LST), a sector led by Ethereum’s Lido and Solana’s Jito, which boast $33.6B and $1.58B, respectively.

Going back to EigenLayer, it’s credited as the pioneer of restaking in June 2023, launched by EigenLabs, a blockchain firm launched in 2021. However, various competitors have emerged since.

Data from DefiLlama shows that the protocol is now the second-largest in the Ethereum ecosystem—only surpassed by Lido—with over $19.14B in total value locked (TVL).

Despite its fast-paced success, the protocol has faced multiple controversies in the last few months. For instance, CryptoMode reported that Justin Drake, an Ethereum researcher, revealed his new position at EigenFoundation, sparking a debate within the blockchain community.

EigenLayer has its own token, EIGEN. However, it’s non-transferable until September. The protocol triggered another controversy following the announcement, given that Chinese and US users were excluded from the launch.

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