 
 
Ethereum’s fast-growing restaking sector is one of the most notable developments in the cryptocurrency space. Advocates are calling it a potential backbone of Web3 while critics warn of systemic risks if it falters.
Staking on Ethereum involves locking ETH to secure the network and earn rewards. Validators store data, process transactions, and add blocks to the blockchain, making the system more resistant to attacks.
Restaking takes this a step further. Through protocols like EigenLayer, stakers can reuse their ETH stake to secure additional services or projects, effectively multiplying yield opportunities without giving up liquidity.
Retaking surge drives protocol dominance and institutional adoption
So far, EigenLayer is the clear leader in restaking. As of mid-2025, it holds roughly 4.4 million restaked ETH, that is about 89% of the market, with more than $12 billion in total value locked (TVL). Competitors like Symbiotic and Karak are far behind, with $1.03 billion and $442 million in TVL, respectively.
EtherFi, which integrates directly with EigenLayer, is also seeing rapid adoption. In early September, Nasdaq-listed ETHZilla Corporation announced it would deploy $100 million into EtherFi from its reserves. Backed by Peter Thiel, the firm has been steadily expanding its Ethereum position, adding more than 20,000 ETH in August alone.
 
According to EtherFi CEO Mike Silagadze, ETHZilla’s move signals the arrival of large-scale institutional players in the liquid restaking market. Traditional staking rewarded security but locked up capital. Restaking allows ETH holders to keep securing the network while unlocking additional returns and retaining liquidity through tradeable receipt tokens. This has already driven sector-wide TVL above $30 billion.
Yet, analysts caution that restaking carries heightened risks. If poorly managed, the same massive pool of staked ETH that supports Ethereum’s security could amplify vulnerabilities across interconnected protocols.
Whether restaking becomes Ethereum’s greatest strength or its Achilles heel may hinge on how these systems handle stress as adoption accelerates.
Source: https://zycrypto.com/ethereum-restaking-could-reshape-the-web3-ecosystem-expert-reveals/