Launch of EigenLayer's Mainnet Sparks Resurgence in Restaking, Opinions Solicited from Four Industry Experts
In the ever-evolving world of decentralized finance (DeFi), EigenLayer is making waves by enabling liquid staking on various platforms. This innovative technology is not only enhancing network security and participation but also removing barriers, making it easier for everyone to join, as stated by Wu, a co-contributor at Hover Market.
EigenLayer's introduction has led to the rise of Actively Validated Services (AVS) on the Ethereum network. Aviv, another industry expert, believes the platform is helping protocols focus on core functionalities instead of securing their own networks, thanks to staking.
Unlike traditional staking protocols, EigenLayer requires ETH holders to make additional promises to validate other networks correctly. This unique approach has attracted significant investment, with venture capital firm Andreessen Horowitz (A16z) investing $100 million in EigenLayer earlier this year.
The biggest beneficiaries of the staking movement are bridges, DEXes, and lending protocols, as stated by Dunkley. Staking protocols like EigenLayer could potentially allow new chains to bootstrap a validator set without a large initial funding requirement.
AVS use staked ETH to secure their networks, including blockchain bridges, exchanges, and oracles. This increased security is a significant advantage, according to Dunkley. The overall security of the blockchain architecture is improving, thanks to innovations like EigenLayer.
EigenLayer powers multiple sidechains and DeFi protocols on Ethereum, potentially accelerating their time-to-market and improving security. Notable firms using EigenLayer to power their crypto staking protocols include Galaxy Digital, Ether.fi, Chorus One, Block Sand, Kiln, and The Ether Machine.
The Ether Machine, a company supported by investors like Pantera Capital, Kraken, and Blockchain.com, uses EigenLayer for staking protocols as part of its strategy to generate yield on Ethereum holdings. Other specific firms using EigenLayer for crypto staking are not directly named in the search results.
EigenLayer's launch on Ethereum mainnet triggered a Total Value Locked (TVL) surge to $15 billion, and the figure has since surpassed $15.6 billion. CoinGecko data shows that crypto staking tokens have witnessed significant traction, now boasting a combined market capitalization of about $6.6 billion.
Some of the increases in TVL may be due to the rising number of airdrops from various staking protocols, which are using rewards to entice users to their platforms, according to Dunkley. McLean from Vega Protocol thinks the general crypto boom is playing a big part, as investors stand to earn higher rewards amid rising crypto prices.
In conclusion, EigenLayer is revolutionizing the DeFi landscape by enabling liquid staking, enhancing network security, and making it easier for everyone to participate. The future looks promising for this innovative technology, as it continues to power various platforms and improve the overall security of the blockchain architecture.
Read also:
- Electric-powered vessels take to the waters of Maine
- Elon Musk accused by Sam Altman of exploiting X for personal gain
- Comparing the value of top electric scooters: Kinetic DX versus Bajaj Chetak versus TVS iQube - Which one offers the best bang for the buck?
- American Eagle's risque promotional effort featuring Sydney Sweeney leads to the brand being categorized as a 'trendy stock' among teenagers.
