By
Godfrey Benjamin
April 26th, 2024
EigenLayer has attracted notable Ethereum investors and Web3 users due to its reputable reward programs.
The Ethereum (ETH) network has grown to a respectable Web3 ecosystem with more than $53 billion in TVL and over $73 billion in stablecoins market cap. The notable growth of the Ethereum network has been a result of the mass adoption of its web3 platforms led by decentralized exchange Uniswap (UNI), liquid staking platform Lido DAO (LDO), decentralized lending protocol AAVE, and liquid restaking platform EigenLayer.
Consequently, Ethereum price has closely mirrored that of Bitcoin in the already confirmed bull market.
EigenLayer Grows Exponentially
The Ethereum network has registered palpable growth since its transition from the Proof-of-Work (PoW) to the Proof-of-Stake (PoS) consensus mechanism through the merge event and the Shanghai upgrade. As of this writing, more than 31 million Ether worth over $108 billion had been staked through different programs.
EigenLayer protocol is backed by Eigen Labs which was established in 2021 to support restaking of Ether on the consensus and settlement layers. The liquid restaking platform currently supports Staked Frax Ether (sfrxETH), Mantle Staked Ether (mETH), Stader Staked Ether (ETHx), Liquid Staked Ether (1sETH), Swell Staked Ether (swETH), Origin Staked Ether (oETH), and Binance Staked Ether (wBETH), among others.
Remarkably, the EigenLayer platform has seen its TVL grow from below $300 million in December last year to around $10.3 billion at the time of this reporting. The notable EigenLayer’s TVL growth is directly attributed to the support from reputable institutional investors.
Mid-last month, Eigen Labs, which is the core development team contributing to the EigenLayer and EigenDA, successfully raised $100 million from leading Eeb3 investor a16z crypto in series B. In March last year, the company announced $50 million in a series A funding round led by Blockchain Capital.
Reputable Web3 Developers
The mainstream adoption of digital assets and Web3 platforms has attracted significant cash inflow to crypto investment products. According to on-chain data analytics provided by Glassnode, more than $48 billion has entered the crypto space in the past 30 days, which is the highest since October 2021.
Over the past few months, the EigenLayer platform has attracted notable attention from different web3 protocols building liquid restaking in the Ethereum network. Essentially, Ethereum restaking enables validators to use already staked Ether to secure new projects, thus earning additional staking rewards along the way.
According to Sreeram Kannan, founder, and CEO of EigenLayer, the restaking program extends what the Ethereum network can do.
More web3 developers are keen to build on top of the Ethereum network because it enables them to tap into a pool of validators, which is economically feasible. Earlier this year, the EigenLayer team announced the strategic integration of Ethereum and Cosmos networks to further enhance multichain security.
