2024-12-16
Ethereum liquid restaking protocols
have seen a dramatic increase in total value locked (TVL), surging from $284.42
million to $17.557 billion in 2024 between January 1, 2024 and December 16,
2024.
This represents a 6,000% growth
over the year, driven by the rising demand for staked asset utility.
Liquid restaking tokens (LRTs) build on
the foundation of liquid staking tokens (LSTs), allowing users to maintain
liquidity while participating in network security.
These tokens can be used in various
decentralized finance (DeFi) activities like trading, lending, and yield
farming.
The liquid staking tokens (LSTs) enable
users to stake their derivative tokens such as stETH from Lido, eETH from
ether.fi into additional networks, such as layer-2 solutions or
application-specific blockchains.
This creates a stacked staking
mechanism, increasing opportunities for yield
Despite the impressive growth, liquid
restaking comes with its own risks, including the depegging or price volatility
of derivative tokens.
Ether.fi has emerged as the market
leader, controlling over 50% of the LRT market TVL with $9.206 billion in
restaked assets. Follow by Kelp rsETH and Eigenpie that have $1.858 billion and
$1.671 billion in restaked assets respectively.
