EigenLayer Emerges as Second-Largest DeFi Protocol with $20.09 Billion TVL

• Total value locked on EigenLayer hits $20.09B, making it second-largest DeFi protocol.
• TVL grew from $1.4B to $20B since the year started, now at 5.21M ether.
• Recent spike fueled by inflows and rising ether price, TVL was $10B in March.
• EigenLayer allows users to deposit ether and staking tokens to secure networks.
• Increased deposits followed token distribution plan adjustments by Eigen Foundation.
• Protocol adopts shared security model for third-party applications to secure themselves.

Summary :
EigenLayer, a restaking protocol, has seen its total value locked (TVL) reach $20.09 billion, making it the second-largest DeFi protocol after Lido. The protocol's TVL has grown significantly since the beginning of the year, starting at $1.4 billion and reaching $20 billion (or 5.21 million ether). This surge in TVL can be attributed to increased inflows and the rise in the price of ether. EigenLayer allows users to deposit ether and various liquid staking tokens to help secure third-party networks. The protocol's mainnet was launched in April, and it experienced a notable increase in deposits following its token distribution plan. However, there was a brief period of outflows due to community backlash over low individual airdrop allocations and the token's non-transferability. The Eigen Foundation addressed these concerns by expanding airdrop allocations for all users and clarifying the timeline of token unlocks and transferability, leading to increased inflows. Notably, May 31 saw a significant spike in inflows, with over half a billion in deposits made on the platform. Eigen Foundation has allocated 15% of its 1.6 billion token supply for user distribution across stakedrop seasons. EigenLayer adopts a shared security model, allowing third-party applications to join the platform and secure themselves by leveraging a collective pool of re-staked ether.

Sources :

- TheBlock