The crypto industry has grown rapidly in recent months, but few networks have grown as quickly as EigenLayer. This is not a separate blockchain, but rather a type of decentralized Ethereum (ETH) staking software. ETH staking is a huge market and investors now seem to realize this. The value of the EigenLayer network has increased enormously since the beginning of this year.
“Copy” ETH for additional staking
The staking feature of the Ethereum network is currently all the rage. Last week, the percentage of all ETH locked into the staking contract hit another record. However, there are also some controversies surrounding the ETH strike. The coins are held by only a few parties, making the Ethereum network relatively centralized. According to on-chain data from Nansen, Lido and Coinbase are by far the largest centralized parties.
There is a good reason for this; It is much easier to give your coins to such a centralized third party than to give them yourself node to be drawn up and included in the strike agreement. For example, it is easier to withdraw your ETH through a third party. This has given rise to several new forms of ETH as people want to trade their so-called “liquid stake coins”.
EigenLayer builds on this by allowing you to reuse your liquid staking coins by depositing them with multiple staking providers and even on multiple blockchains at the same time. strike. How to protect multiple networks at the same time. This ensures leverage and higher returns.
EigenLayer has become extremely popular
Investors now seem to be aware of how lucrative this is in comparison. According to blockchain analytics service DefiLlama, the total value locked (TVL), or the total amount provided to the EigenLayer network, has increased to around $6 billion. At the beginning of January this amount was still at 1.1 billion dollars, and in mid-December it was only 250 million dollars.
TVL now accounts for around 2% of all ETH in circulation. Interest in networking on social media platform