2024-07-04
On July 4, 2023, Symbiotic, an EigenLayer competitor in the
restaking market, has crossed $1 billion in user deposits in under a month.
Between June 11, 2024 and July 4, 2024, Symbiotic’s TVL
increased from $314 million to $1.037 billion.
Whereas, EigenLayer currently has $16.835 billion in TVL.
This is a significant milestone for the company,
demonstrating the growing interest and trust in its restaking protocol.
Symbiotic’s rapid growth can be attributed to its flexible
security model and support for a variety of assets, including ERC-20 compatible
assets, LP tokens, and other digital assets.
Its unique approach allows users to directly deposit any
asset based on Ethereum’s ERC-20 token standard, making it directly compatible
with Lido’s staked ETH (stETH) token, as well as thousands of other assets that
use the ubiquitous ERC-20 standard.
The protocol, which is backed by Lido co-founders and
venture capital firm Paradigm, was designed to rival EigenLayer in the Ethereum
restaking sector.
Symbiotic allows users to restake assets they've deposited
with other crypto protocols to secure decentralized applications, known as
actively validated services (AVSs).
Unlike EigenLayer, which primarily accepts ETH and a few
ETH derivatives, Symbiotic accepts a broader range of ERC-20 tokens, making it
more versatile in the DeFi ecosystem.
The impressive growth of Symbiotic is partly due to its
significant initial funding of $5.8 million from Paradigm and Cyber Fund, and
its innovative approach to restaking.
This backing from established players in the DeFi space has
undoubtedly contributed to Symbiotic’s rapid success.
