EigenLayer TVL hits $12.9B, climbs 11% in one week — IntoTheBlock

EigenLayer Leads Restaking Sector with $12.9 Billion TVL, Driven by AVS Rewards and Ethereum Interest

As of August 15, EigenLayer stands as the leading platform in the restaking ecosystem, boasting a total value locked (TVL) of $12.9 billion. This represents an 11% increase from the previous week's $11.6 billion, according to IntoTheBlock (ITB) data.

Restaking allows users to repurpose their cryptocurrency assets to secure external Actively Validated Services (AVS), potentially earning additional rewards. EigenLayer’s TVL is primarily composed of Wrapped Ether (WETH), which makes up 70% of the total assets, amounting to approximately $8.8 billion. This reflects the broader market trend of using Ether-based tokens for liquidity.

The growth in EigenLayer’s TVL signals a burgeoning interest in the restaking sector. Other protocols in the market, like Karak, are also experiencing significant growth, with Karak reaching a TVL of $826 million and holding around 27% of WETH.

Overall, the combined TVL of major restaking protocols has increased to $14.5 billion, up from $13.3 billion on August 8. Alon Muroch, CEO of SSV.Labs, attributes this growth to the recent launch of AVS Rewards and the unlocking of slashing penalties, which he believes is drawing increased interest to restaking.

Mike Silagadze, CEO of Ether.fi, highlighted the potential for restaking to become mainstream. Despite concerns about the risks of having assets slashed across multiple networks, he noted that the enhanced rewards could outweigh these risks.

source: https://cointelegraph.com/news/eigenlayer-restaking-platform-tvl-growth