Bittensor (tao) 
Ethereum Prices Dip as ETH Holders Shift Focus to Restaking Protocols
In the past month, Ethereum prices have seen a slight decline of over 4%. However, ETH holders have been moving away from Lido Finance and towards liquid restaking protocols, according to data from a Dune Analytics dashboard.
Lido Finance experienced the highest outflow of Ethereum, with over 284,800 ETH withdrawn from the platform. Despite this, Lido still maintains a dominant position in the Ethereum staking space, holding a 29.7% market share.
On-chain data indicates that ETH stakers are increasingly turning to liquid restaking protocols. While Lido saw significant outflows, platforms like Ether.fi and Renzo Protocol attracted large inflows, with over 400,000 and 280,100 Ether respectively.
Ether.fi and Renzo are currently the two largest liquid restaking platforms, with Ether.fi boasting a total value locked (TVL) of $3.1 billion and Renzo attracting investments of over $2.1 billion. Collectively, these protocols have locked over $8 billion.
The shift from Lido to platforms like Ether.fi and Renzo highlights a growing interest in Eigenlayer points among defi participants. These liquid restaking protocols leverage Eigenlayer’s platform to allow stakers to secure other networks and solutions using their ETH.
Eigenlayer has built upon Ethereum’s staking feature, which became prominent following the Merge in September 2022. Stakers now play a crucial role in securing the Ethereum chain by locking up ETH with validators under a proof-of-stake consensus mechanism.
By repurposing staked ETH for a broader range of protocols and chains connected to Ethereum, Eigenlayer rewards participants with points that could potentially be converted into a token airdrop in the future.
The rise of liquid restaking protocols and the shift towards Eigenlayer points reflect a broader trend towards decentralization and innovation within the cryptocurrency staking space.
For more news and updates on cryptocurrency trends, visit Global Crypto News.
