Ethereum, the second-largest digital asset by market capitalization, is buying and selling close to the pivotal $4000 milestone for the primary time since December 2021, up 15% through the previous week.
Amid this worth rally, main restaking protocol EigenLayer is now the second-largest DeFi protocol by way of complete worth locked, in keeping with DeFillama knowledge.
ETH’s worth
Ethereum is at present priced at $3954 following a 4% acquire through the previous day, in keeping with CryptoSlate’s knowledge.
This upward motion in Ethereum’s worth could be linked to the joy surrounding the upcoming Dencun improve scheduled to go reside on the mainnet by Mar. 13. Dencun brings proto-danksharding to Ethereum, a strategic transfer geared toward reducing transaction bills for layer-2 blockchains, thus tackling scalability considerations head-on.
Furthermore, the market is anticipating the potential approval of a spot ETH ETF by the US SEC. Ought to this approval materialize, it may function a major catalyst propelling the continuing worth surge even additional.
EigenLayer’s hovering TVL
EigenLayer’s TVL soared to an all-time peak of $11.7 billion through the week, surpassing Aave’s TVL of $11.4 billion.
Notably, on Mar. 5, the protocol witnessed a staggering $790 million constructive change in TVL, marking its highest day by day surge since Feb. 9, in keeping with blockchain analytical agency IntoTheBlock.
The expansion trajectory of EigenLayer’s TVL has been outstanding, particularly up to now 30 days, witnessing a five-fold surge from roughly $2 billion at first of the earlier month to its present determine. Impressively, the full property locked on the protocol have skyrocketed to greater than 3 million ETH, up from below 1 million in early February.
This surge in TVL intently follows EigenLayer’s determination to elevate token restaking restrictions and remove TVL caps for particular person tokens final month. Group members count on these modifications to change into everlasting someday later this 12 months.
In the meantime, EigenLayer’s distinctive restaking mannequin attracted vital investments, notably a $50 million Collection A funding spherical in March 2023 led by Blockchain Capital and a $100 million funding from Andreessen Horowitz in February 2024.
Nevertheless, EigenLayer’s speedy progress has prompted heightened safety scrutiny, prompting the challenge to supply rewards of as much as $100,000 to researchers uncovering the platform’s medium or increased severity safety points.
