EigenLayer’s Total Value Locked (TVL) has surged to nearly $6 billion, marking a 170% increase from $2.15 billion since Feb. 5, according to DeFiLlama data. This growth, equivalent to about 2.3 million ether, represents approximately 2% of ether’s total circulating supply.

The spike in TVL has propelled EigenLayer into the top five DeFi protocols by TVL, positioning it ahead of Uniswap and trailing only behind giants like Lido, Maker, Aave, and JustLend.

EigenLayer’s TVL at $5.851 billion on DeFiLlama

The significant rise follows EigenLayer’s decision to temporarily lift deposit caps, previously set at 200,000 ether ($500 million) for each liquid staking token.

EigenLayer’s TVL has increased by 171% in the past 7 days to US$5.66 billion, surpassing Uniswap to become the fifth largest protocol in terms of TVL. EigenLayer deposits will be open until 4:00 UTC+8 on February 10th.

“@eigenlayer has now surpassed Uniswap to take the number 5 spot with a TVL of $5.74b. The question now is not ‘will it surpass $10b?’ but ‘when will it surpass $10b & take the number 2 spot?’. Going to be one hell of an airdrop frens.”

This move is part of EigenLayer’s strategy to eventually eliminate deposit caps entirely, fostering a permissionless, neutral environment while promoting decentralization. The protocol aims to enhance organic demand and incentivize participation with reward points and potential Eigen token airdrop rewards.

EigenLayer, a protocol facilitating the deposit and re-stake of ether via liquid staking tokens, supports the security of third-party networks while offering users the chance to earn additional rewards. Since its inception in June 2023, EigenLayer has expanded its liquid staking token offerings, with contributions from major staking projects and a $50 million Series A funding round led by Blockchain Capital in March 2023.

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