Home Business EigenLayer crypto grows by 300% – what’s behind it?

EigenLayer crypto grows by 300% – what’s behind it?

Since the Shanghai update in 2023, staking on the Ethereum (ETH) network has become very popular. Crypto enthusiasts are always looking for new ways to make the most of it. This has, among other things, ensured that the restaking protocol EigenLayer has become the fourth largest platform of its kind based on Total Value Locked (TVL).

EigenLayer is a restaking protocol on the Ethereum network that allows validators and stakers to re-stake their stake tokens to secure and validate other networks, while providing the opportunity to earn additional yield in the decentralized finance (DeFi) sector .

Breakthrough: $7 billion TVL

According to data from DeFiLlama, EigenLayer reached a TVL worth $7 billion on February 15th. The platform achieved this goal after an impressive 48% increase in just 7 days. In the past month, TVL has actually increased by more than 300%.

The surge began after the protocol temporarily lifted its strike limit. This allowed more users to participate in the staking process. Although a new betting limit has been introduced, there are plans to permanently remove this limit in the future.

EigenLayer is about to launch its mainnet for operators, offering investors the opportunity to run their own staking node. Additionally, the protocol is preparing to launch EigenDA, a decentralized service focused on data availability.

Note the number of validators in the queue

The success of the Ethereum blockchain has also led to a significant increase in the number of validators waiting to participate. For the first time in over four months, the queue for new validators has increased to 7,045, a clear sign of the growing interest in supporting the network.

This increase will see more than 225,000 ETH staked, further strengthening the security and decentralization of Ethereum. Validators play a crucial role in validating transactions and adding new blocks. In return, they receive rewards in the form of ETH.

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