Etherfi maintains lead in liquid restaking niche with over $3.8 billion in deposits

Etherfi continues to lead the cash withdrawal market, managing over 1.07 million ETH, which translates to approximately $3.8 billion in user deposits.

Etherfi gives users access to new returns through EigenLayer, highlighting its role in the growing niche.

Cash withdrawals have seen notable growth this year, largely driven by increased deposits into EigenLayer, which plans to use ETH deposits to power third-party protocols. This in turn increases the total value captured in LRTs, with Etherfi owning a significant portion of this value.

While Etherfi is leading the way in liquid asset withdrawals, other protocols are also contributing immensely to the market. These include Renzo with $2.9 billion, Puffer with $1.4 billion, Kelp with more than $840 million, Swell with $345 million and Eigen with $340 million, according to The Block’s data dashboard.

Restaking allows users to use their staked ETH – or a corresponding liquid staking token – on platforms like EigenLayer for re-withdrawal purposes. EigenLayer then allocates this ETH to support other Ethereum-based applications, so-called “actively validated services,” broadening Ethereum’s security framework.

Withdrawing liquid assets offers the advantage of being able to use EigenLayer’s services, while maintaining the liquidity and accessibility of users’ ETH capital. These protocols will continue to accept ether deposits, redeploy them, and issue derivative tokens, providing users with additional incentives to participate in the ecosystem, which includes LRTs and EigenLayer’s rewards programs.

LRT protocols also provide an alternative means for users who do not have 32 ETH (used for native or direct re-withdrawal) to access the platform. This explains why the best LRT protocols have amassed assets totaling $9.7 billion, accounting for more than two-thirds of EigenLayer’s $13 billion TVL.