A popular Ethereum restaking protocol, EigenLayer, experienced a surge in inflows recently. The platform saw approximately $157 million in Lido’s staked ETH within a 24-hour period, marking the highest influx since February.
This uptick in activity comes at a time when Lido’s share of the Ethereum staking market dropped below 30% due to outflows into other restaking protocols.
EigenLayer made a significant announcement on April 16, removing caps on all ETH liquid staking tokens (LST) and allowing unpaused restaking deposits. This move is seen as a step towards fostering innovation and providing users with more freedom within the EigenLayer ecosystem. The protocol had previously imposed caps to ensure decentralization and prevent dominance by any single token.
Despite recent market fluctuations, EigenLayer remains a dominant player in the restaking sector, controlling 99% of the market. Data from DeFillama indicates that there are approximately 4 million ETH on the platform, valued at over $12.2 billion.
On the flip side, Lido has seen a decline in its market share over the past month, with nearly 400,000 ETH flowing out of the platform. Competing liquid staking protocols like Ether.fi and Renzo have attracted over 700,000 ETH during the same period.
Market experts attribute Lido’s market share decrease to increased competition in the liquid staking landscape. Ethereum educator Anthony Sassano commented on the situation, stating that healthy competition in the staking space is beneficial for decentralization.
Overall, EigenLayer’s removal of caps and record inflows signal a shift in the dynamics of the Ethereum staking market, with increased competition and innovation on the horizon.
