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- EigenLayer temporarily removed 200,000 $ETH per protocol staking limit until February 9.
- The network’s TVL jumped from around $2.5B to $3.74B as per data from DefiLlama.
EigenLayer, an Ethereum-based liquid restaking protocol, temporarily lifted its staking cap 14 hours ago, and since then, the total-value locked (TVL) has increased by a whopping $1 billion.
In an effort to “invite organic demand” to the network, EigenLayer stated on February 5 that it will temporarily remove its 200,000 Ether ($ETH) per protocol staking limit until February 9. This interim abolition is “paving the way to a future” when all staking limits are eliminated permanently, according to the protocol.
According to statistics from DefiLlama, investors poured their liquid-staked Ethereum tokens into the protocol in the few hours after the announcement, causing the network’s TVL to jump from around $2.5 billion to $3.74 billion. The astonishing $1.6 billion gain last week was underscored by this enormous surge.
Lido Staked $ETH Dominates
Staking Ethereum tokens ($ETH) to secure other networks is one way for investors to increase the return on their $ETH holdings using the EigenLayer protocol. At the moment, EigenLayer is compatible with liquid staking tokens like stETH (Staked Ethereum) from Lido DAO and swETH (Swell Stated Ether).
With over $1.2 billion in EigenLayer TVL, Lido Staked $ETH is now the most restaked token on the platform. With $392 million in TVL, Swell Staked $ETH ranks second on the protocol.
Tokens may be locked up and used for validation, lending, and liquidity on other blockchain networks via a process called restaking, which attracts investors. Both developers and market analysts have voiced skepticism of the protocol’s approach comparing large-scale restaking to leverage.
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