EigenLayer TVL crosses $15 billion despite potential yield crisis

  • EigenLayer’s total value locked climbed to $15.13 billion on Tuesday. 
  • Crypto experts say the Ethereum staking protocol could face a major yield crisis as it outpaces the security needs of its rapidly growing ecosystem. 
  • Despite the potential yield crisis, EigenLayer dominates re-staking protocols with the highest TVL. 

EigenLayer has locked $15.13 billion in crypto assets on its restaking platform since its launch on April 9, piling on assets from users even as the staking protocol has been criticized for growing faster than its ecosystem can secure. 

EigenLayer gathers $15.13 billion in crypto on its chain

Data from crypto intelligence tracker DeFiLlama shows that the largest Ethereum restaking protocol’s Total Value Locked (TVL) crossed $15 billion on Tuesday. The protocol’s TVL has climbed nearly 9% since April 9, the project’s launch date. 

EigenLayer TVL 

According to an official tweet by the protocol, 2.2 million of restaker Ether has been delegated on EigenLayer since the mainnet launch. 

The project has launched a total of six actively validated services with several functionalities to address users’ needs in the Ethereum ecosystem. Coinbase Cloud, Ankr, and the Graph Foundation are among the protocol’s operators, as seen on ethrestaking.com. 

Potential yield crisis faces EigenLayer

Chudnov Glavniy, creator of a crypto-native derivatives protocol “3jane” on EigenLayer, recently shared his views on the project in a tweet thread on X. The expert says that the restaking protocol is likely facing a major yield crisis, with over $15 billion TVL and less than 10% of it needed for security, Glavniy’s argument is that “yields may fall off a cliff.” 

The expert states that despite good technology, EigenLayer may be “biting off more than it can chew by opening the door to more than $15 billion in deposits.”

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.