In 2024, Ethereum's liquid restaking showcases explosive growth, reaching $17.26 billion in total value locked (TVL) by mid-December.
The Surge in Liquid Restaking
Ethereum's liquid restaking jumped from $284 million at the beginning of 2024 to $17.26 billion by December. This increase highlights the rising demand for staked asset utility and capital efficiency in decentralized finance (DeFi).
Liquid Restaking Features and Risks
Liquid staking allows users to stake assets like ETH and receive derivative tokens that maintain liquidity, such as stETH. Liquid restaking extends this to securing additional networks. However, derivative tokens may face price volatility and depegging, multiplying associated risks.
Market Leaders and DeFi's Future
Among the leading protocols in liquid restaking, Ether.fi captures over 50% market share, with restaked assets exceeding $9 billion. DeFi's resurgence fuels this rapid expansion, as the total TVL in DeFi exceeded $133.88 billion.
The rapid growth of liquid restaking underscores its significance in the modern decentralized ecosystem. Despite risks, DeFi's growing popularity continues to drive its adoption.
