EigenLayer\u2019s TVL tripled since temporarily removing caps on its LST pools on Feb. 5.<\/p>\n
EigenLayer, the pioneering Ethereum restaking protocol, has amassed more than 10% of circulating ETH liquid staking tokens after temporarily removing the caps on its LST pools.<\/p>\n
On Feb. 5, EigenLayer\u00a0announced<\/a>\u00a0it would accept unrestricted deposits in the form of liquid staking tokens (LSTs) until Feb. 9 at 8pm EST. The move proved an immediate success, with more than\u00a0$1.5B<\/a>\u00a0worth of LSTs flowing into the protocol within 24 hours of the announcement.<\/p>\n EigenLayer\u2019s total value locked (TVL) is up 163% since the caps were removed, with its TVL growing from $2.15B to $5.67B as of this writing. Data from Dune Analytics indicates EigenLayer currently hosts\u00a010.7%<\/a>\u00a0of the circulating LST supply, with the metric tripling since the caps were lifted.<\/p>\n EigenLayer supports 12 LSTs after adding three more on Feb. 5. Lido\u2019s stETH accounts for\u00a056.7%<\/a>\u00a0of EigenLayer\u2019s liquid staking TVL, followed by Swell\u2019s swETH with 12%, Mantle\u2019s mETH with 10.9%, and Stader\u2019s ETHX with 5.6%.<\/p>\n <\/p>\n LSTs boast a TVL of $37.1B, equating to 50.5% of the $73.8B worth of ETH that is currently staked, according to DeFi Llama.<\/p>\n EigenLayer is now the fifth-largest DeFi protocol after overtaking Uniswap on Feb. 7. The protocol allows users to simultaneously earn staking rewards plus additional yields for securing third-party Actively Validated Services (AVSs).<\/p>\n Users can either participate by natively restaking ETH, or by depositing LSTs into its pools. EigenLayer has previously incrementally raised the limits for its LST pools, with the Feb. 5 move comprising the first instance in which the protocol has offered unbridled access to LST users.<\/p>\n More than $1.6B worth of ETH is also natively restaked via the protocol, with EigenLayer now commanding 7.7% of the staked Ether supply including LSTs.<\/p>\n In a blog post, EigenLayer\u00a0teased<\/a>\u00a0that it is preparing to permanently remove the limits on LST deposits on a pool-by-pool basis. The team said they are seeking to strike a balance between decentralization and neutrality.<\/p>\n Justin Sun, the founder of Tron, is among those taking advantage of the temporary absence of LST pool limits. Data from\u00a0Arkham Intelligence<\/a>\u00a0shows Justin Sun depositing $258M worth of stETH to the protocol on Feb. 7.<\/p>\n <\/p>\nEigenLayer storms DeFi rankings<\/h2>\n