Ethereum

2024

<p class="is-style-lead">The EigenLayer (TVL) protocol’s total locked value exceeded $1 billion after staking restrictions were removed to create more “organic demand” on the network.</p> 
<p>According to EigenLayer, the protocol team has decided to raise the staking limit to 200,000 Ethereum (<a href="https://crypto.news/price/Ethereum/">ETH</a>) by Feb. 9 to create “organic demand” on the network. The minutes say this temporary removal “paves the way for a future” where all betting restrictions will be removed permanently.</p> 
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   <p lang="en" dir="ltr">🟦 EigenLayer Restaking Reloaded! 🟦<br><br>From NOW until Feb 9th, 12 PM PT, dive back into the world of LST restaking! All pools are fully uncapped, featuring both the existing pools and welcoming new partners <a href="https://twitter.com/fraxfinance?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">@fraxfinance</a>, <a href="https://twitter.com/liquid_col?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">@liquid_col</a>, &amp; <a href="https://twitter.com/0xMantle?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">@0xMantle</a>. <a href="https://t.co/yDGHiJjX3m" target="_blank">pic.twitter.com/yDGHiJjX3m</a></p>— EigenLayer (@eigenlayer) <a href="https://twitter.com/eigenlayer/status/1754596238761332939?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">February 5, 2024</a>
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<p>According to <a href="https://crypto.news/tag/DefiLlama/" target="_blank" rel="noreferrer noopener">DefiLlama</a>, following the announcement, the protocol’s <a href="https://crypto.news/tag/TVL/" target="_blank" rel="noreferrer noopener">TVL</a> increased from approximately $2.5 billion to nearly $3.65 billion at publication as investors funneled their respective liquid ETH tokens into the protocol. This outsized increase represents a staggering increase of $1.15 billion last week.</p> 
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 <img loading="lazy" decoding="async" width="1024" height="299" src="https://crypto.news/app/uploads/2024/02/Screenshot-2024-02-06-at-11.22.23-1024x299.png" alt="EigenLayer's TVL reaches $1b after staking restrictions removed - 25" class="wp-image-14245652">
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  Source: DefiLlama
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<p>EigenLayer is an infrastructure component that will strengthen the adoption of ETH staking while essentially turning it into a public good that other networks and protocols can use without starting from scratch for their security.</p> 
<p>EigenLayer is considered a new use case for ETH <a href="https://crypto.news/tag/staking/" target="_blank" rel="noreferrer noopener">staking</a>. However, developers have expressed concerns about the protocol’s mechanics,&nbsp;describing large volumes of re-staking&nbsp;as akin to leverage.</p> 
<p>Most notably, last May, Ethereum co-founder Vitalik Buterin <a href="https://crypto.news/buterin-raises-concerns-about-extending-ethereums-consensus-beyond-core-functions/" target="_blank" rel="noreferrer noopener">warned</a> that a significant increase in re-staking, as well as over-reliance on data or price oracles, could pose serious “systemic risks” to the Ethereum ecosystem.</p> 
<p> You might also like: <a href="https://crypto.news/vitalik-buterin-unveils-major-overhaul-of-ethereum-staking-to-enhance-decentralization/"> Vitalik Buterin unveils major overhaul of Ethereum staking to enhance decentralization </a> </p>

EigenLayer’s TVL reaches $1b after staking restrictions removed

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