Etherfi remains the leader in the liquidity resale niche with over $3.8 billion in deposits.
Etherfi continues to lead the liquid re-staking market with over 1.07 million ETH under management, equivalent to approximately $3.8 billion in user deposits.
Etherfi, which has established itself as a prominent liquid re-staking (LRT) protocol, provides users with access to re-staking yields through EigenLayer, highlighting Etherfi’s important role in the growing LRT market.
The LRT sector has experienced significant growth this year, largely driven by increased deposits from EigenLayer, which seeks to leverage ETH deposits to power third-party protocols. This will ultimately increase the total value locked in LRT and Etherfi will hold a significant portion of this value.
Etherfi remains the leader in the LRT space with a valuation of over $3.8 billion, but other protocols are also contributing significantly to the market. According to The Block’s data dashboard, this includes Renzo with $2.9 billion, Puffer with $1.4 billion, Kelp with $840 million, Swell with $345 million and Eigen with $340 million.
Re-staking allows users to re-stake using staked ETH (or equivalent liquid staking tokens) on platforms such as EigenLayer. EigenLayer then extends Ethereum’s security framework by allocating this ETH to support other Ethereum-based applications, called “actively verified services.”
Liquid re-staking provides users with the advantage of participating in EigenLayer’s services while maintaining the liquidity and accessibility of their ETH capital. These protocols will continue to accept and re-stake Ether deposits and issue derivative tokens, giving users additional incentives to participate in the ecosystem, including LRT and EigenLayer’s rewards programs.
The LRT protocol also provides an alternative means for users without 32 ETH (used for base or direct re-staking) to access the platform. This explains why the top LRT protocols have amassed a total of $9.7 billion in assets, accounting for more than two-thirds of EigenLayer’s $13 billion TVL.
The expansion of the liquid staking segment has fueled growth in part due to liquid staking projects and EigenLayer’s anticipated airdrop.
Analysts suggest that users are attempting LRT airdrops and that once they receive funds, they may redirect them into alternative means. However, Etherfi, which already concluded its airdrop distribution last month, continues to maintain its top spot in its niche.
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