Ethereum‘s restaking protocol EigenLayer witnessed a notable increase in its Total Value Locked (TVL) over the past week. The surge in activity is likely tied to two main factors: the planned Ethereum Dencun Hard Fork on March 13th and growing interest in Ethereum’s Layer-2 chains and liquid staking tokens, such as beta games.
Ethereum Restaking Protocol EigenLayer’s TVL Exceeds $11 Billion
EigenLayer‘s TVL, which was at $9.675 billion at the beginning of March, has risen to $11.712 billion as of today, Friday, marking a significant increase. This rise in TVL can particularly be linked to the resurgence of Ethereum beta games, including Layer-2 tokens and staking and restaking protocols, especially with the anticipation of the Dencun upgrade.
The Ethereum Dencun upgrade is expected to reduce costs for Layer-2 chains, thereby facilitating the adoption of the altcoin and potentially increasing demand for Ethereum and its native tokens in the medium to long term. This development likely contributes to the growing narrative surrounding protocols that facilitate the staking and restaking of Ethereum by investors.
Second Place After Lido
The rising TVL of EigenLayer has elevated it to the second position in the rankings, currently only behind Lido, one of the largest crypto staking platforms. EigenLayer users have the option to restake their Ethereum, allowing other blockchains to benefit from Ethereum’s robust engine.
According to data from DeFiLlama, EigenLayer’s TVL saw an impressive 20% increase last week, underscoring the platform’s growing popularity and significance within the DeFi ecosystem.
Benefiting from the momentum created by the upcoming Dencun Hard Fork and the increasing interest in Ethereum’s beta games, EigenLayer has positioned itself as a key player in the evolving landscape of decentralized finance. Looking at the Ethereum price at the time of writing, we see it trading at $3,976, with Ethereum reaching up to $3,986 today.
What to Expect After the Dencun Hard Fork?
It can be suggested that this development may reflect positively on the Ethereum price. With the recent increase, the cryptocurrency ETH price is almost reaching $4,000.
After the hard fork, it is possible for the ETH price to break its all-time high. Of course, this will also depend on Bitcoin‘s price not taking a downturn.
