Justin Sun Deposits 120,000 eETH into Swell L2, Contributing 46% of the Platform's TVL
Justin Sun’s Contribution to Swell L2 Highlights His Influence in the Liquid Restaking Sector
Justin Sun, the founder of TRON, has made headlines once again with his recent move in the crypto space. According to Wu Blockchain, Sun's wallet has deposited a total of 120,000 eETH into the liquid restaking protocol Swell L2 on May 4th.
Justin Sun's team address 0x7a9...3095 deposited 120,000 EETH (the deposit certificate after ETH is deposited into EtherFi) into Swell L2 on May 4, worth US$376 million, accounting for 46.6% of the total deposits of Swell L2. https://t.co/QT0AoxKv69
— Wu Blockchain (@WuBlockchain) May 5, 2024
Key Points:
- Massive Deposit: The assets deposited by Sun are valued at approximately $376 million, accounting for 46.6% of Swell L2’s total value locked (TVL).
- eETH Background: eETH, or ether.fi Staked ETH, is a token representing liquid staked ETH on Ethereum. This ETH was originally deposited by Sun into ether.fi in mid-March, right before the protocol launched its token.
TVL of Swell L2 as of 06/05/2024. Source: DefiLlama
Background and Context:
Sun’s wallet began withdrawing ETH from Binance earlier this year when Ethereum was priced around $2,800 per coin. In late April, Sun publicly shared his views on the staking and liquid restaking sectors, denying claims that he was profiting from these protocols. He emphasized his role as an advisor to these projects, expressing strong belief in the potential of staking and liquid restaking as significant income sources for companies and international organizations.
The Liquid Restaking Landscape:
Liquid restaking on Ethereum is a booming sector, allowing ETH and Ethereum’s liquid staking tokens to participate in validating other blockchains, essentially restaking these tokens. This sector has seen significant growth, with total value locked (TVL) rising continuously.
Restaking and staking services have undergone long-term development and have achieved very substantial results. In the future, they will be spun off into independent brands, operating entities, and operations to support and empower All blockchain in the world! 🚀
— H.E. Justin Sun 孙宇晨 (@justinsuntron) April 30, 2024
- Leading Protocols:
- Lido Finance: Dominates the liquid staking space with $29.48 billion in TVL.
- EigenLayer: Despite launching only late last year, EigenLayer has quickly amassed $15.6 billion in TVL, making it the third-largest protocol in DeFi. EigenLayer recently announced plans for a token launch and airdrop, allocating 15% of the total supply to reward users participating in staking on the platform.
Conclusion:
Justin Sun's substantial deposit into Swell L2 not only underscores his significant influence in the liquid restaking sector but also highlights the growing importance and potential of this segment within the broader cryptocurrency ecosystem. As liquid restaking continues to gain traction, it is poised to become a crucial component of the DeFi landscape, attracting substantial investments and interest from key industry players.
