Originally published on: December 09, 2024
The decentralized finance (DeFi) ecosystem is hitting new heights in 2021, approaching levels not seen since the year began, as reported by DefiLlama. This surge in Total Value Locked (TVL) is fueled by the rise of liquid restaking tokens (LRTs) and the expansion of Bitcoin-native layer 2 networks (L2s), alongside the ongoing cryptocurrency price surge in the bullish 2024 market.
Current data as of Dec. 9 reveals that aggregate DeFi TVL has surpassed $134 billion, marking a year-to-date increase of nearly 150%, but still falling short of the 2021 peak of $170 billion. According to DefiLlama, these figures indicate a promising future for restaking in the crypto world and the broader adoption of DeFi strategies by institutional investors.
Restaking involves leveraging tokens that have already been staked to secure other protocols simultaneously. EigenLayer, the leading restaking platform launched in 2023, has amassed over $17 billion in TVL, fostering the growth of various LRT protocols like Ether.Fi, Renzo, and Kelp. These LRT protocols collectively hold over $16 billion in TVL, with Ether.Fi alone securing more than $9 billion.
Notably, Lido emerges as the primary TVL contributor in DeFi, with nearly $40 billion staked through its Ether liquid staking token (LST) platform. Bitcoin liquid staking tokens (LSTs) are also gaining ground, with a TVL exceeding $2.5 billion and growing rapidly on L2 networks like CoreChain and Babylon.
Among Bitcoin LSTs, Lombard leads the pack with a TVL of about $1.15 billion, followed closely by Solv at approximately $1 billion. Staking Rewards data reveals that EigenLayer has attracted around 10% of Lido’s stETH LST for restaking.
In a Dec. 9 report shared with Cointelegraph, Kairos Research emphasized the potential for leveraging risk-adjusted strategies in staking Ether and other cryptocurrencies. As the DeFi landscape continues to evolve, restaking innovations and the adoption of L2 networks are expected to drive further growth in TVL and present lucrative opportunities for investors.
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