Etherfi continues to lead the liquid re-staking market with over 1.07 million ETH under management, equivalent to approximately $3.8 billion in user deposits.
Etherfi allows users to access re-staking yields through EigenLayer, highlighting its role in a growing niche market.
Liquid re-staking has grown significantly this year, driven by increased deposits from EigenLayer, which seeks to leverage ETH deposits to power third-party protocols. This will ultimately increase the total value locked in LRT and Etherfi will hold a significant portion of this value.
While Etherfi leads the way in liquid re-staking, other protocols also contribute significantly to the market. According to The Block’s data dashboard, this includes Renzo with $2.9 billion, Puffer with $1.4 billion, Kelp with $840 million, Swell with $345 million and Eigen with $340 million.
Re-staking allows users to re-stake using staked ETH (or equivalent liquid staking tokens) on platforms such as EigenLayer. EigenLayer then extends Ethereum’s security framework by allocating this ETH to support other Ethereum-based applications, called “actively verified services.”
Liquid re-staking provides users with the advantage of participating in EigenLayer’s services while maintaining the liquidity and accessibility of their ETH capital. These protocols will continue to accept and re-stake Ether deposits and issue derivative tokens, giving users additional incentives to participate in the ecosystem, including LRT and EigenLayer’s rewards programs.
The LRT protocol also provides an alternative means for users without 32 ETH (used for base or direct re-staking) to access the platform. This explains why the top LRT protocols have amassed a total of $9.7 billion in assets, accounting for more than two-thirds of EigenLayer’s $13 billion TVL.
Disclaimer: The Block is an independent media outlet delivering news, research and data. As of November 2023, Foresight Ventures is a majority investor in The Block. Foresight Ventures invests in other companies in the cryptocurrency space. Cryptocurrency exchange Bitget is an anchor LP of Foresight Ventures. The Block continues to operate independently to provide objective, impactful and timely information about the cryptocurrency industry. Below are our current financial disclosures.
© 2023 The Block. All rights reserved. This article is provided for informational purposes only. It is not provided or intended to be used as legal, tax, investment, financial or other advice.