Staking protocol EigenLayer TVL hits $10 billion as ETH surges

• EigenLayer’s total value locked (TVL) has surpassed $10 billion.
• This puts the restaking protocol above Maker and just behind Aave in terms of TVL.
• The spike comes amid increased restaking activity and Ethereum price rallying to above $3,500.

EigenLayer, the staking protocol on Ethereum, has seen its total value locked (TVL) skyrocket to over $10 billion amid the surge in Ethereum (ETH) price.

With EigenLayer, users can “restake” tokens they have already locked up to help secure the Ethereum network. The restaking makes it possible for stakers to earn rewards for helping secure other ecosystem protocols.

EigenLayer TVL soars to $10 billion

According to data from DeFiLlama, the protocol’s TVL has increased sharply in the past month. 

On February 5, 2024, the EigenLayer TVL stood at $2.15 billion, but as Ethereum price climbed above $3k over the month, that surged to above $7.6 billion by February 24 and $10.3 billion by March 4, 2024.

ETH price also saw a decent spike over the month, rising more than 50% to highs of $3,500.

The platform has also seen a massive spike in ETH deposits, driven by increased activity around liquid restaking protocols. Per market data, February recorded the highest influx of deposited tokens, dwarfing December and August 2023.

EigenLayer stats- deposited tokens monthly chart

The spike now has EigenLayer third in top DeFi protocols by TVL behind lending platform Aave and liquid staking protocol Lido.

EigenLayer attracts a16z backing

EigenLayer hit the market in June last year as it launched on the Ethereum mainnet, quickly becoming a top platform for restaking with liquid providers such as Lido and RocketPool.

Eigen Labs, the core development team supporting EigenLayer development, raised $50 million in a Series A round led by Blockchain Capital in March 2023. The round also attracted participation from other prominent investors, including Coinbase Ventures, Polychain Capital, Electric Capital and Ethereal Ventures.

In February this year, Eigen Labs, announced a $100 million raise from venture capital firm Andreessen Horowitz (a16z). According to EigenLayer Labs, a16z crypto was the only investor in the Series B financing round.

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