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Ever since the concept of re-staking was introduced, Ethereum (ETH) staking has become increasingly popular.
A New Paradigm for Ethereum Staking
According to an analysis by AMBCrypto of Stake Rewards data, the amount of ETH locked in the network has increased by 9% over the past three months. In fact, its growth rate has been parabolic since February.
Interestingly, according to DeFiLlama, the success story of the re-staking narrative, EigenLayer, has seen a similar growth curve in its Total Value Locked (TVL).
Moreover, Tom Wan, a research analyst at the Web3 company 21.co, recently revealed that over 12% of staked Ether has been re-staked.
These findings reinforce previous claims about re-staking, providing momentum for ETH staking.
Why Are Users Inclined Towards Re-staking?
EigenLayer has made significant strides in 2024, quickly surpassing competitors to become the second-largest DeFi protocol. The success lies in its unique product—re-staking.
Re-staking involves reusing staked ETH to extend security to applications beyond Ethereum. With no guesswork involved, this allows stakers to earn additional rewards from the assets they deposit. As participation increases, the returns from traditional ETH staking continue to decline, making re-staking a viable option for users to boost their income.
What are the Benefits of ETH?
Overall, staking and re-staking both underscore an important broader concept—ETH as an income-generating asset. With stable, guaranteed returns, users can start viewing it from a long-term perspective rather than seeking short-term gains from market price fluctuations.
Interestingly, the results are already being felt. For example, according to AMBCrypto's analysis of CryptoQuant data, Ethereum's exchange supply ratio has plummeted to multi-year lows.
This could gradually lead to market scarcity, and as demand continues to grow, it could exert positive pressure on the price of ETH. |
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Post time 15-4-2024 07:03:53