TVL EigenLayer Approaches $1 Billion USD After Boosting Restaking Limits

EigenLayer's cumulative TVL (Total Value Locked) has once again surged following its decision to increase limits on liquid restaking pools.

TVL EigenLayer Approaches $1 Billion USD After Boosting Restaking Limits

After increasing limits on liquid staking pools, EigenLayer's TVL has skyrocketed in the past day, reaching 436,570 ETH (approximately $950 million USD), nearly quadrupling from just a few days ago.

In the early hours of December 19th (Vietnam time), EigenLayer began boosting the capacity of several existing restaking pools, including stETH (Lido), stETH (Rocket Pool), and cbETH (Coinbase). Simultaneously, the project introduced 6 additional LST pools:

• swETH (Swell)
• sETH (Stakewise)
• xETH (Stader)
• oETH (Origin)
• ankrETH (Ankr)
• wBETH (Wrapped Beacon Ether)

Existing restaking pools on EigenLayer

Starting from 120,000 ETH, the project raised the limit to 500,000 ETH (around $1.1 billion USD) for all LST restaking pools. These pools quickly filled up, pushing the Total Value Locked (TVL) of the protocol close to the $1 billion USD mark from $250 million USD.

EigenLayer TVL fluctuation over the month. Source: Defi LIama

Many users aim to accumulate more activity points to increase their chances of receiving airdrops from Eigen and other projects launching pools on the platform. EigenLayer will halt all user deposits once the total pool limit of 500,000 Ethereum is reached.

EigenLayer is renowned for its protocol allowing users to lock and restake ETH from various liquid staking tokens. The platform launched its mainnet in June this year, following a successful Series A funding round of $50 million USD in March 2023. Initially, EigenLayer set limits for its liquid staking and native staking services at 3,200 and 9,600 ETH, respectively.

Restaking is a relatively new mechanism introduced earlier this year in June, with EigenLayer pioneering this model. In essence, restaking involves ETH stakers reusing locked ETH to enhance security for other protocols.