As of Aug. 15, EigenLayer, a restaking platform built on Ethereum, has the leading position in the restaking ecosystem, with a total value locked (TVL) of $12.9 billion.
According to IntoTheBlock (ITB) data, EigenLayer TVL witnessed an 11% increase from $11.6 billion one week prior, indicating growth in the restaking sector.
Restaking involves users repurposing their cryptocurrency assets to secure external Actively Validated Services (AVS) with the potential to earn additional rewards.
ITB data depicting EigenLayer dominance in the restaking market. Source: ITB
Related: Restaking is ‘inevitable,’ but the risks are still uncertain — Ether.fi CEO
70% of EigenLayer TVL in WETH
According to ITB data, EigenLayer’s TVL mainly comprises Wrapped Ether (WETH), accounting for 70% of the platform’s total assets worth approximately $8.8 billion.
This significant WETH concentration indicates that the EigenLayer restaking ecosystem mirrors the wider market, with Ether (ETH)-based tokens commonly used for liquidity provisions.
ITB chart depicting WETH concentration of ‘Restaked Asset TVL.’ Source: ITB
Restaking market growth
As EigenLayer secures the leading position in TVL within the restaking market, other protocols also show growth.
According to ITB data, Symbiotic, another restaking platform built on Ethereum that launched in June, hit $1.07 billion TVL as of Aug. 14, with Wrapped Staked ETH (WSTETH) comprising 63% of its assets.
Related: EigenLayer enhances EigenDA security to combat Sybil attacks
Karak, another recent entrant to the restaking market, also hit a TVL of $826 million, with around 27% of holdings on the platform consisting of WETH.
Overall, the restaking market combined TVL of the biggest protocols has risen to $14.5 billion from $13.3 billion on Aug. 8.
Speaking with Cointelegraph, Alon Muroch, CEO and founder at SSV.Labs, discussed the rationale behind the growth, indicating it is “most likely” due to “AVS Rewards mainnet launch and slashing unlock.”
“This is 'a big step' for EigenLayer and it could be bringing much more interest to restaking since it’s also the first time EigenDA will begin rewarding its stakers and operators.“
ETH restaking to become mainstream
On Aug. 13, Mike Silagadze, CEO of liquid restaking protocol Ether.fi, spoke at the Blockchain Futurist Conference about restaking becoming mainstream.
Related: Eigen Labs acquires Rio Network, opens LRT code
Silagadze explained that although the “risk of restaking” has yet to be “fully characterized,” there are many reasons to believe the risks will likely be “fairly low.”
The risk discussed by Silagadze included potentially having staked assets “slashed by five different networks” instead of one, but the weigh-up would result in considerably enhanced rewards.