CryptoSphere by AsCurrency

CryptoSphere: cryptocurrency news, market analysis, blockchain trends and investments. Your essential guide to the digital economy

Liquid Restaking Total Value Locked Surpasses $8.4 Billion: Next Big Narrative?


The decentralized finance (DeFi) sector is witnessing a transformative trend, with liquid restaking tokens (LRTs) reaching a staggering total value locked (TVL) of nearly $8.5 billion.

This surge highlights a broader narrative within the DeFi ecosystem, suggesting a shift in investment dynamics.

Which Liquid Restaking Protocols Are Contributing to TVL Growth?

Leading this charge is EtherFi, which alone commands a TVL exceeding $3.3 billion. Consequently, protocols like Renzo, Kelp, and Puffer are also experiencing unprecedented growth.

Etherfi’s dominance, followed closely by Renzo with $2.2 billion and Puffer at $1.3 billion, signifies a robust market appetite for liquid restaking. Moreover, Kelp and EigenPie contribute significantly, with TVL of over $750 million and $342 million, respectively.

“Liquid restaking protocols now control almost 5% of staked Ethereum, most of which was staked in 2024,” pseudonymous DeFi researcher Hildobby said.

Liquid Restaking TVL Rankings
Liquid Restaking TVL Rankings. Source: DefiLlama

Importantly, the adoption of EigenLayer is central to this trend. It facilitates restaking, allowing users to maintain access to their funds, which boosts the TVL in these protocols.

Specifically, since February 2024, EigenLayer and other restaking platforms started attracting community attention. A report by BeInCrypto highlighted a remarkable 171% increase in EigenLayer’s TVL in just one week in February, underscoring the market’s enthusiasm for liquid restaking.

Despite a temporary halt in restaking deposits on EigenLayer, the interest in LRTs remains high. Protocols like EtherFi, Renzo, and Kelp continue to attract ether deposits for restaking, promising additional rewards through Eigen. This move has maintained momentum and bolstered the growth of liquid restaking.

The allure of an EigenLayer airdrop has further invigorated the DeFi community. Many are depositing staked Ethereum into EigenLayer to improve their airdrop prospects. This strategy is indicative of the evolving tactics within the DeFi sector aimed at maximizing returns.

The consistent increase in TVL and strategic restaking practices indeed highlights the emerging potential of liquid restaking as a pivotal narrative in the DeFi space.

“Liquid restaking is the main narrative for the next decade,” DeFi analyst Chrome said.

Top crypto platforms in the US | April 2024


Coinbase

Coinbase
Explore →

AlgosOne

AlgosOne
Explore →

Chain GPT

Chain GPT
Explore →

iTrustCapital

iTrustCapital
Explore →




Conclusion

In conclusion, the rapid growth of liquid restaking tokens (LRTs) in the decentralized finance (DeFi) sector, with a total value locked (TVL) nearing $8.5 billion, signifies a significant shift in investment trends within the DeFi ecosystem. Leading protocols like EtherFi, Renzo, Kelp, and Puffer have seen substantial increases in TVL, with EtherFi commanding the highest at $3.3 billion. The adoption of EigenLayer has played a central role in driving this trend, allowing users to restake their funds while maintaining access to them. The increasing interest in LRTs and strategic restaking approaches point to the emerging potential of liquid restaking as a key narrative in the DeFi space for the coming years.

  • bitcoinBitcoin (BTC) $ 65,576.00
  • ethereumEthereum (ETH) $ 3,431.93
  • bnbBNB (BNB) $ 588.40
  • solanaSolana (SOL) $ 138.09
  • xrpXRP (XRP) $ 0.499294
  • cardanoCardano (ADA) $ 0.376407
  • shiba-inuShiba Inu (SHIB) $ 0.000018
  • polkadotPolkadot (DOT) $ 5.89