EigenLayer Hits $3 Billion TVL After Second Restaking Limit Increase

EigenLayer's liquid restaking platform is temporarily removing old staking limits per protocol.

Following its second limit increase for restaking, EigenLayer achieves a cumulative TVL of $3 billion. Photo: Bankless

This morning (06/02), EigenLayer has once again raised the ceiling for token deposits into its platform. Henceforth, each portfolio is allowed to restake up to 200,000 new tokens. The participation period for this activity runs from today until February 9th.

In addition, EigenLayer has introduced three new liquid staking tokens (LST), including sfrxETH (Frax Finance), mETH (Mantle), and LsETH (Liquid Collective).

Within two hours of expanding the restaking limits, over 1 million Ethereum (ETH) flowed into the platform, boosting EigenLayer's accumulated TVL to $3 billion. As of now, EigenLayer's TVL stands at $3.2 billion, marking a $1 billion increase in just the past 24 hours.

EigenLayer's TVL fluctuations from July 2023 to date. Source: Defi Llama

Restaking is becoming a prominent trend, allowing users to redeploy staked ETH to other platforms like Data Availability (via EigenDA product line) and network validation for new establishments (through AVS). Despite its straightforward mechanism, restaking proves to be significantly capital-efficient and enhances accessibility to DeFi for users.

Another restaking project built on EigenLayer and backed by Binance Labs, Puffer Finance, has also garnered considerable attention since its launch on February 2nd, quickly securing the top 4 TVL spot within its sector.

Alongside the surge in restaking, some developers caution that EigenLayer's "shared security" model may potentially strain or congest the Ethereum network, especially with the impending Dencun upgrade.