Ethereum restaking protocol EigenLayer noticed inflows of roughly $157 million in Lido’s staked ETH over the last 24 hours, marking the digital asset’s highest influx on the platform since February.
Notably, this vital influx into EigenLayer comes at a time when Lido’s share of the Ethereum staking market has dropped under 30% because of outflows into restaking protocols.
LST cap elimination
On April 16, EigenLayer introduced the elimination of caps on all ETH liquid staking tokens (LST) and unpaused restaking deposits.
The elimination of LST caps signifies a pivotal part for EigenLayer’s ecosystem because it strives to foster an open marketplace for innovation and grants customers unrestricted entry to all LST swimming pools on its platform. Beforehand, EigenLayer had imposed caps to bolster decentralization and mitigate the chance of dominance by any single token.
These caps have been intermittently lifted over the previous 12 months earlier than the latest mainnet launch. Nonetheless, the choice to take away caps is accompanied by a governance participation restrict of 33% for any liquid-staked token to uphold neutrality and decentralization.
Regardless of latest market volatility, EigenLayer stays the dominant protocol throughout the restaking sector, controlling 99% of the market. Knowledge from DeFillama reveals that there are presently roughly 4 million ETH on the platforms, price greater than $12.2 billion.
Restaking eats into Lido’s dominance
A Dune Analytics dashboard curated by Dragonfly analyst Hildobby reveals that Lido skilled the biggest outflow amongst staking platforms previously month, totaling practically 400,000 ETH, lowering its market share to twenty-eight.87%.
Throughout the identical interval, liquid restaking protocols Ether.fi and Renzo attracted greater than 700,000 ETH to their platforms.
Market observers defined that Lido’s market share decline was as a result of heightened competitors throughout the liquid staking panorama. Ethereum educator Anthony Sassano mentioned:
“The best way to stop Lido from growing and reduce its market share is to increase competition in the staking space, which we have now done! The Ethereum staking ecosystem has never been healthier and I’m looking forward to seeing an even more decentralized staking ecosystem as time goes on.”
The publish EigenLayer removes caps, sees report $157 million influx as Lido dominance dips appeared first on CryptoSlate.
