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EigenLayer’s TVL Hits $10 Billion as Ether Price Soars

EigenLayer, a protocol that allows users to deposit and re-stake ether from various liquid staking tokens, has reached a new milestone of $10 billion in total value locked (TVL) as of today. This represents a tenfold increase from the beginning of the year, when the protocol had only $1.1 billion in TVL.

The surge in EigenLayer’s TVL is attributed to two main factors: the continuous inflow of ether deposits and the rise in ether’s price. Ether, the native cryptocurrency of the Ethereum network, has been on a bullish trend since the start of 2024, reaching a new all-time high of $4,500 on March 1. At the time of writing, ether is trading at $4,350, up 25% from a month ago.

Source: CryptoQuant

EigenLayer leverages the power of ether to secure third-party networks that use different consensus mechanisms, such as proof-of-stake or proof-of-authority. By depositing ether to EigenLayer, users can receive liquid staking tokens that represent their stake in the protocol. These tokens can then be re-staked to other networks, earning rewards from both EigenLayer and the network of choice.

EigenLayer’s vision is to create a cross-chain ecosystem that connects Ethereum with other blockchains, enabling interoperability and scalability. The protocol’s stage 1, which supports Ethereum 2.0 and Binance Smart Chain, launched on the Ethereum mainnet in June 2023. Since then, the protocol has attracted over 2.93 million ether, equivalent to 2.5% of the total ether supply.

EigenLayer has also received strong backing from prominent investors in the crypto space. In March 2023, EigenLabs, the company behind EigenLayer, closed a $50 million Series A funding round led by Blockchain Capital, one of the oldest and most active venture capital firms in the industry. In February 2024, EigenLabs announced a $100 million Series B round led by Andreessen Horowitz, one of the most influential venture capital firms in Silicon Valley.

EigenLayer’s impressive growth and innovation have earned it a reputation as one of the most promising projects in the crypto space. As the protocol prepares to launch its stage 2, which will support more networks and features, many analysts and observers expect EigenLayer to continue its upward trajectory and cement its position as a leader in the cross-chain space.

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