EigenLayer is seeing a wave of user withdrawals with more than $68 million withdrawn from the protocol in the past week.
More than 68 million USD was withdrawn from EigenLayer in the past week
According to The Block, the EigenLayer reStaking protocol has seen a negative inflow of $68 million in the past week. At its peak on July 11, EigenLayer recorded a record outflow day with more than 43,550 ETH (about 135 million USD) withdrawn from the protocol.
Statistics on daily in/out cash flow on EigenLayer. Source: The Block (July 19, 2024)
Under pressure from users to withdraw massively, EigenLayer's TVL has dropped about 22.4%, from a peak of $20.1 billion in early June to $15.6 billion at the time of writing. Figures show that EigenLayer lost more than $4.5 billion in TVL in just over a month.
TVL statistics of EigenLayer. Source: defillama (July 19, 2024)
Even so, EigenLayer still maintains its position in the top 2 largest DeFi protocols, just behind Lido , and far ahead of AAVE, Maker and ether.fi.
Ranking of the top DeFi protocols. Source: defillama (July 19, 2024)
This downward trend is not only happening at EigenLayer, but other projects in the reStaking segment have also seen a significant decline in TVL in recent days. Typically, the Liquid reStaking protocol invested by Binance Labs Renzo lost nearly half of its TVL in just one month, falling from 4.07 billion USD in early June to 2.065 billion USD TVL. Present. Other reStaking protocols like Puffer Finance , KelpDao , Swell , and Eigenpie have lost about 22% TVL on Medium compared to last month.
Renzo's TVL statistics. Source: defillama (July 19, 2024)
This is in stark contrast to the amount of ETH Staking that has increased significantly as the Ethereum ETF nears its launch date, showing that users are no longer "interested" in reStaking projects when this field can be considered saturated. with too many "follow-up" projects being created.
It seems that the launch of Token reStaking protocols has reduced the profit potential from Airdrop, making these projects gradually become less attractive in the eyes of investors. In addition, the recent Airdrop of Renzo and EigenLayer has lost favor with reStaking projects, facing strong opposition from the tokenomics community.
EigenLayer then had to Airdrop an additional 100 EIGEN for each participating wallet, and Renzo also adjusted tokenomics , Airdrop schedule and reward conditions to appease public opinion.
Notably, reStaking protocols have not yet announced the launch of Token and are emerging such as Symbiotic , which is known as a challenger to EigenLayer's dominance which has exceeded TVL of more than 1 billion USD after just one month of launch and is still increasing, showing how the attraction from Airdrop has greatly impacted the TVL of reStaking projects recently.
Symbiotic's TVL statistics. Source: defillama (July 19, 2024)
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