EigenLayer has witnessed a significant surge in user deposit amounts, surpassing the $900 million mark. The protocol adjusted deposit limits for liquid assets, leading to a sharp increase in the overall volume. Today, they have reached 410,000 ethers (ETH), almost four times more than just a few days ago.
Earlier, the EigenLayer protocol had set a re-staking limit at 110,000 ETH and temporarily halted deposit inflows. Yesterday, on December 18, 2023, the restrictions were eased, establishing a new threshold of 500,000 ETH, equivalent to approximately $1.1 billion for LST re-staking.
Consequently, the total locked value of the protocol surged from $250 million to over $900 million in just one day. Analysts anticipate that surpassing the $1 billion mark will occur very soon.
“EigenLayer offers users a protocol to re-stake Ether from various tokens in liquid placements with the aim of subsequently redistributing these funds to protect third-party networks.” The protocol’s initial phase was launched on the Ethereum network in June of this year.
Upon its launch, EigenLayer allowed users to stake LST from three projects: Lido, Rocket Pool, and Coinbase. The protocol expanded its range by including an additional six LSTs: swETH Swell, sETH Stakewise, xETH Stader, oETH Origin, ankrETH Ankr, and Wrapped Beacon Ether (wBETH).
The increase in limits and the offering of various LSTs led to a surge in user activity. Many users deposited funds to participate in the network and earn points. These points could potentially enable stakers to receive rewards in Eigen tokens in the future.
Company representatives confirmed that EigenLayer will halt all user deposits once the limit of 500,000 ethers is reached. It’s worth noting that this year, EigenLabs successfully closed a $50 million Series A funding round led by Blockchain Capital.
