As a seasoned analyst with years of experience in the cryptocurrency market, I’ve witnessed the rise and fall of countless projects. The recent development at EigenLayer has piqued my interest, not just because it’s making waves in the Ethereum community but also due to its potential impact on the broader decentralized finance (DeFi) ecosystem.
The Eigen Foundation has revealed its plan to distribute 1% of the total EIGEN tokens towards the Protocol Guild, a community of key developers who work on the maintenance of the primary Ethereum blockchain.
As stated by the Eigen Foundation, the allocated resources aim to sustain the ongoing activities of the Protocol Guild, a group with 180 members spread across 29 different teams at present.
EigenLayer represents a re-staking system on the Ethereum network, enabling users to multiply their staked Ether (stETH) and various other assets for repeated staking. This not only offers extra earning potential for investors but also empowers other protocols to utilize Ethereum’s robust security mechanisms.
The role has made EigenLayer an essential piece of the Ethereum network’s framework, earning it both commendation and apprehension from the Ethereum community.
Restaking captures narrative attention
Restaking, it’s been suggested, can serve as a means to infuse new funds into the cryptocurrency sphere. It holds the possibility of introducing a novel asset category, given that restaking transforms into an off-site mechanism for securing blockchain systems and decentralized apps.
By enabling protocols to leverage re-staked assets for network security, they avoid the need to issue a separate token specifically for securing the network. This modification could substantially reduce the hurdles for developers and decentralized apps, making it easier for them to enter the network.
As an analyst, I’ve recently discovered that a staggering $26.9 billion is currently secured across various restaking protocols, as reported by DefiLlama. Notably, EigenLayer dominates this landscape, accounting for about 68% of the total value locked (TVL), with an impressive figure of approximately $18.2 billion.
As a crypto investor, I’ve witnessed the surge of EigenLayer that catapulted the EIGEN token into the elite club of the top 100 cryptocurrencies by market capitalization last October. Yet, in the subsequent period, the token has slipped out of this prestigious group and currently stands at rank 108 in terms of market cap.
Starting in November, EigenLayer broadened its staking alternatives to incorporate Wrapped Bitcoin items. This upgrade enables users to put uniBTC into the ARPA Network, an EigenLayer-based protocol, thereby earning a return on their deposit.
According to recent statistics from DefiLlama in December, the combined worth secured within the Decentralized Finance (DeFi) market is rapidly approaching last year’s peak values. This notable increase in secured value can be partly attributed to the rise of liquid restaking products and an expansion in the availability of wrapped Bitcoin tools.
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2024-12-13 00:44