Liquid Restaking TVL Skyrockets to Over $8.4 Billion: Emerging as the Next Big DeFi Narrative?
The decentralized finance (DeFi) sector is undergoing a significant transformation, with liquid restaking tokens (LRTs) now accounting for an astounding total value locked (TVL) of over $8.4 billion.
This surge in TVL showcases a broader narrative within the DeFi ecosystem, indicating a notable shift in investment dynamics.
One of the major contributors to this growth is EtherFi, which alone commands a TVL exceeding $3.3 billion. Additionally, protocols like Renzo, Kelp, and Puffer are also experiencing unprecedented surges in TVL.
Etherfi’s dominance, followed closely by Renzo with $2.2 billion and Puffer at $1.3 billion, underlines the strong market demand for liquid restaking. Furthermore, Kelp and EigenPie significantly contribute with TVLs of over $750 million and $342 million, respectively.
According to pseudonymous DeFi researcher Hildobby, “Liquid restaking protocols now control almost 5% of staked Ethereum, most of which was staked in 2024.”
The adoption of EigenLayer is a crucial factor in this trend. This protocol facilitates restaking, enabling users to maintain access to their funds, thereby bolstering the TVL in these protocols. EigenLayer has emerged as a pivotal element, with its TVL surpassing an impressive $12.4 billion. The protocol’s strategy to utilize these funds for network security enhancement is noteworthy.
The remarkable increase in EigenLayer’s TVL in just one week in February, as highlighted by a BeInCrypto report, underscores the market’s enthusiasm for liquid restaking. Since then, even though there was a temporary halt in restaking deposits on EigenLayer, the interest in LRTs remains high. Protocols like EtherFi, Renzo, and Kelp continue to attract ether deposits for restaking, promising additional rewards through Eigen. This trend has sustained momentum and further bolstered the growth of liquid restaking.
The introduction of an EigenLayer airdrop has added further excitement to the DeFi community. Many participants are depositing staked Ethereum into EigenLayer to improve their airdrop prospects. This strategic move reflects the evolving tactics within the DeFi sector aimed at maximizing returns.
The consistent rise in TVL and the adoption of strategic restaking practices highlight the emerging potential of liquid restaking as a significant narrative in the DeFi space.
According to DeFi analyst Chrome, “Liquid restaking is the main narrative for the next decade.”