EigenLayer, a leading restructuring protocol, reached a major milestone as its total value locked (TVL) exceeded $20.09 billion.
EigenLayer's Total Locked Value Exceeds $20 Billion, Becoming the Second Largest DeFi Protocol
This success positions EigenLayer as the second largest decentralized finance (DeFi) protocol behind Lido.
Since the beginning of the year, EigenLayer's TVL has experienced significant growth, rising from $1.4 billion to over $20 billion, or approximately 5.21 million Ethereum.
At the beginning of March, EigenLayer's TVL was valued at $10 billion, equivalent to 2.93 million Ethereum. The recent increase in TVL can be attributed to increased inflows and the increase in Ethereum price.
EigenLayer's mainnet launched in April, and the protocol allows users to deposit Ethereum and various liquid staking tokens to secure third-party networks.
Following its launch, the protocol saw a significant increase in deposits, driven by its token distribution plan.
However, this period also witnessed significant outflows due to low individual airdrop allocations and community dissatisfaction with the token's non-transferability.
In response, the Eigen Foundation expanded airdrop allocations for all users and clarified the timeline for token unlocking and transferability.
These adjustments helped ease concerns and were followed by a renewed increase in inflows.
The Eigen Foundation has reserved 15% of its 1.6 billion token supply for user distribution across multiple stakedrop seasons, with 5% allocated as of March 2024. The protocol is currently in its second stakedrop season.
*This is not investment advice.