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 delegation momentum is going strong!

2.2M of restaked ETH has been delegated on EigenLayer since the mainnet launch.

Thanks to users and LRTs like Renzo for leading the way.

Delegate here: https://t.co/nPg305AtJN https://t.co/5veDsrQrFT
— EigenLayer (@eigenlayer) April 22, 2024

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.”

1/ EigenLayer is facing a *major* yield crisis, and nobody is talking about it. @eigenlayer has >$15B in TVL but AVS's will actually need less than *10%* of that for security, which means yields may fall off a cliff
— chudnov (@chudnovglavniy) April 22, 2024

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