EigenLayer, the staking protocol integrated with Ethereum, has witnessed a remarkable increase in its total value locked (TVL), surpassing $10 billion, thanks to the surge in Ethereum (ETH) prices.
Through EigenLayer, users have the ability to “restake” tokens they have already committed to help secure the Ethereum network. This restaking mechanism enables stakers to earn rewards for contributing to the security of other ecosystem protocols.
Data sourced from DeFiLlama reveals a significant spike in the protocol’s TVL over the past month.
On February 5, 2024, EigenLayer’s TVL was recorded at $2.15 billion. However, as Ethereum’s price soared above $3,000 during the month, the TVL surged to over $7.6 billion by February 24, ultimately reaching $10.5 billion by March 4, 2024.
The price of ETH also experienced a notable uptick, rising by more than 50% to reach highs of $3,500.
EigenLayer has observed a substantial increase in ETH deposits, driven by heightened activity surrounding liquid restaking protocols. Market data indicates that February witnessed the highest influx of deposited tokens, surpassing the numbers from December and August 2023.
This surge has positioned EigenLayer as the third-largest DeFi protocol by TVL, trailing behind lending platform Aave and liquid staking protocol Lido.
Launched on the Ethereum mainnet in June of the previous year, EigenLayer swiftly emerged as a leading platform for restaking, collaborating with liquid providers like Lido and RocketPool.
Eigen Labs, the core development team behind EigenLayer, secured a $50 million Series A funding round led by Blockchain Capital in March 2023. Notable investors such as Coinbase Ventures, Polychain Capital, Electric Capital, and Ethereal Ventures also participated in the round.
In February of the current year, Eigen Labs announced a $100 million raise from venture capital firm Andreessen Horowitz (a16z). According to EigenLayer Labs, a16z crypto was the sole investor in the Series B financing round.
Accelerating Ethereum Together: @eigenlayer ♾ @a16zcrypto
We are excited to announce that Eigen Labs, the core development team contributing to EigenLayer and @eigen_da, has raised $100 million from a16z crypto.https://t.co/M2JQ8HZZ0h
— EigenLayer (@eigenlayer) February 22, 2024
