EigenLayer TVL crosses $15 billion despite potential yield crisis

Source Fxstreet
  • EigenLayer’s total value locked climbed to $15.13 billion on Tuesday. 
  • Crypto experts say the Ethereum staking protocol could face a major yield crisis as it outpaces the security needs of its rapidly growing ecosystem. 
  • Despite the potential yield crisis, EigenLayer dominates re-staking protocols with the highest TVL. 

EigenLayer has locked $15.13 billion in crypto assets on its restaking platform since its launch on April 9, piling on assets from users even as the staking protocol has been criticized for growing faster than its ecosystem can secure. 

EigenLayer gathers $15.13 billion in crypto on its chain

Data from crypto intelligence tracker DeFiLlama shows that the largest Ethereum restaking protocol’s Total Value Locked (TVL) crossed $15 billion on Tuesday. The protocol’s TVL has climbed nearly 9% since April 9, the project’s launch date. 

EigenLayer

EigenLayer TVL 

According to an official tweet by the protocol, 2.2 million of restaker Ether has been delegated on EigenLayer since the mainnet launch. 

The project has launched a total of six actively validated services with several functionalities to address users’ needs in the Ethereum ecosystem. Coinbase Cloud, Ankr, and the Graph Foundation are among the protocol’s operators, as seen on ethrestaking.com. 

Potential yield crisis faces EigenLayer

Chudnov Glavniy, creator of a crypto-native derivatives protocol “3jane” on EigenLayer, recently shared his views on the project in a tweet thread on X. The expert says that the restaking protocol is likely facing a major yield crisis, with over $15 billion TVL and less than 10% of it needed for security, Glavniy’s argument is that “yields may fall off a cliff.” 

The expert states that despite good technology, EigenLayer may be “biting off more than it can chew by opening the door to more than $15 billion in deposits.”

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Bitcoin Returns to $79,000 Level. Prediction Markets Bullish on Breaking $80,000 in AprilBitcoin prices have strengthened again, breaking through $79,000 amid strong bullish sentiment; however, investors should be wary of this week's Federal Reserve interest rate decision.On
Author  TradingKey
7 hours ago
Bitcoin prices have strengthened again, breaking through $79,000 amid strong bullish sentiment; however, investors should be wary of this week's Federal Reserve interest rate decision.On
placeholder
WTI sticks to modest gains above $94.00 as Hormuz standoff fuels supply concernsWest Texas Intermediate (WTI) – the benchmark US Crude Oil price – kicks off the new week on a positive note and reverses a part of Friday's modest decline, though the upside remains capped.
Author  FXStreet
17 hours ago
West Texas Intermediate (WTI) – the benchmark US Crude Oil price – kicks off the new week on a positive note and reverses a part of Friday's modest decline, though the upside remains capped.
placeholder
Semiconductor Sector Continues to Rise, Should Retail Investors Buy Intel or AMD? On April 23, Eastern Time, Intel (INTC) reported its latest quarterly earnings results, showing that revenue grew 7% to $13.6 billion and earnings per share was $0.29, beating expectation
Author  TradingKey
Apr 24, Fri
On April 23, Eastern Time, Intel (INTC) reported its latest quarterly earnings results, showing that revenue grew 7% to $13.6 billion and earnings per share was $0.29, beating expectation
placeholder
Gold drops below $4,700 on stronger US Dollar, Middle East tensions Gold price (XAU/USD) falls to around $4,690 during the early Asian session on Friday. The precious metal attracts some sellers amid a stronger US Dollar (USD) and elevated oil prices that stoked inflation worries. 
Author  FXStreet
Apr 24, Fri
Gold price (XAU/USD) falls to around $4,690 during the early Asian session on Friday. The precious metal attracts some sellers amid a stronger US Dollar (USD) and elevated oil prices that stoked inflation worries. 
placeholder
Silver Price Forecast: XAG/USD plummets below $76 as oil price posts fresh weekly highSilver price (XAG/USD) is down almost 2.3% to near $76.00 during the European trading session on Thursday. The white metal faces selling pressure as oil prices extends its winning streak for the third trading day on Thursday.
Author  FXStreet
Apr 23, Thu
Silver price (XAG/USD) is down almost 2.3% to near $76.00 during the European trading session on Thursday. The white metal faces selling pressure as oil prices extends its winning streak for the third trading day on Thursday.
goTop
quote