EigenLayer, an Ethereum staking protocol, has surged in total value locked (TVL), surpassing Aave, a prominent lending protocol, in terms of committed funds. EigenLayer's TVL reached an unprecedented $11 billion on March 5, exceeding Aave's 21-month high of $10.7 billion. This achievement positions EigenLayer as the second-largest decentralized finance (DeFi) protocol by TVL, trailing only the staking giant Lido. However, both EigenLayer and Aave have seen slight declines in TVL since then, with EigenLayer currently standing at $10.4 billion and Aave at $10.35 billion.
EigenLayer and similar re-staking protocols allow users to re-stake derivative tokens, such as Lido Staked ETH (stETH), on which they have already staked Ethereum. While this practice has sparked controversy, with concerns raised by some Ethereum developers regarding excessive leverage, proponents argue that it offers additional rewards to ETH stakers. EigenLayer's TVL began its ascent on February 5 when it temporarily lifted its staking cap to encourage further growth, experiencing a remarkable increase of 382.5% since then.
The methodology for calculating re-collateralized TVL, particularly involving assets like stETH derived from staking, has prompted scrutiny. Austin Federa, head of strategy at Solana Foundation, questioned this approach, suggesting that assets tied to another protocol should not be counted as TVL. He contended that if native staked assets are excluded from TVL calculations, re-staking should also be excluded. Federa's comments underscore ongoing debates within the DeFi community regarding the accuracy and relevance of TVL metrics.
Data from Dune Analytics reveals that EigenLayer boasts over 115,000 unique depositors, with DefiLlama statistics indicating that 74% of staked tokens consist of Wrapped Ether (wETH) and stETH. In comparison, Aave reports more than 5,700 daily active users, while Lido has fewer than 430, according to Token Terminal. Aave has faced recent challenges, including the departure of its long-time risk manager Gauntlet on February 21, citing issues with inconsistent guidelines and unspecified goals from major stakeholders.
Liquid staking protocols, including EigenLayer, represent a significant segment within the DeFi landscape, wherein users receive tokens equivalent to their pledged funds at a 1:1 ratio. This category stands as the largest within DeFi, encompassing approximately 160 protocols with a combined locked value of nearly $55 billion. The dominance of liquid staking protocols, fueled largely by Lido, which alone accounts for $35 billion in locked value, underscores the growing diversification and innovation within the DeFi sector.
