EigenLayer deposits soar to over $900 million amid increased LST caps

EigenLayer has recorded a significant increase in user deposits, which now exceed $900 million.

The protocol adjusted the deposit limits for liquid assets, leading to an increase in the total number of deposits. Today these reached 410,000 ether ($900 million), almost a fourfold increase from just a few days ago.

Until a few days ago, EigenLayer had set a re-bet limit of less than 120,000 ETH and kept deposits on hold. On Monday, the protocol increased its limit and set a new threshold of 500,000 ETH (equivalent to approximately $1.1 billion) for all redeployed LSTs. As a result, the total value of the protocol has increased from $250 million to over $900 million. The protocol appears to be on track to surpass $1 billion in deposits and reach the maximum threshold.

EigenLayer provides a protocol that allows users to deposit and “re-stake” ether from various liquid staking tokens, with the aim of then allocating these funds to secure third-party networks. Phase 1 of the protocol was launched on the Ethereum mainnet in June.

New LSTs are supported

At launch, EigenLayer allowed users to deposit LSTs from three staking projects: Lido, Rocket Pool, and Coinbase. The protocol has now expanded its reach with six additional LSTs: Swell’s swETH, Stakewise’s sETH, Stader’s xETH, Origin’s oETH, Ankr’s ankrETH, and Wrapped Beacon Ether (wBETH).

This increase in limits and the offering of different LSTs led to an increase in activity, with many depositing money to join the network and earn points. These points could potentially give stakers the opportunity to receive Eigen token rewards in the future, although this remains speculative.

EigenLayer will pause all user deposits once the 500,000 ether limit is reached.

EigenLabs closed a $50 million Series A funding round led by Blockchain Capital in March.