EigenLayer TVL rockets $1B after temporarily removing staking caps

EigenLayer’s TVL surged 43% after the protocol announced it had removed its staking caps for the next three days.

Ethereum-based liquid restaking protocol EigenLayer’s total-value locked (TVL) has surged by a staggering $1 billion in just eight hours after the protocol temporarily removed its staking cap. 

On Feb. 5, EigenLayer announced that it would temporarily lift its 200,000 Ether (ETH) per protocol staking cap until Feb. 9 in a bid to “invite organic demand” to the network. The protocol said this temporary removal is “paving the way to a future” where all staking caps are permanently removed.

In the eight hours following the announcement, the protocol’s TVL surged from roughly $2.5 billion to $3.58 billion at the time of publication as investors funneled their respective liquid-staked ETH tokens into the protocol, according to data from DefiLlama. This outsized growth marked a staggering $1.6 billion increase last week.

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Source: https://cointelegraph.com/news/eigenlayer-tvl-rockets-1b-after-removing-staking-caps