The total value locked (TVL) in liquid staking protocols has surged to nearly $8 billion as users increasingly deposit their assets through platforms like Etherfi, Renzo, EigenPie, and Swell. This rise in TVL is largely due to users leveraging EigenLayer to engage in liquid re-staking while still being able to access their funds.

Leading Role of Etherfi

Recent data from The Block shows that Etherfi is leading the pack with a TVL surpassing $3.2 billion. Following Etherfi, Renzo holds $2 billion in TVL, with Puffer closely behind at $1.3 billion. Additionally, platforms like Kelp, EigenPie, and Swell have seen significant TVL growth, underscoring the increasing popularity of liquid staking protocols.

Liquid staking protocols enhance economic security by enabling token holders to stake their assets directly on EigenLayer, offering a different approach from traditional staking methods. Through platforms like Etherfi and Renzo, users can stake tokens directly and still retain liquidity, allowing them to earn rewards. EigenLayer plays a pivotal role in boosting TVL for these protocols by facilitating deposit and withdrawal processes in various liquid staking platforms.

With an ambitious TVL goal of over $13 billion, EigenLayer plans to utilize the deposited funds to bolster the security of various other networks like rollups, oracles, and data availability platforms. Despite a brief period where fund reclamation was permitted in February, these protocols remain open for deposits, providing users with an alternate avenue to engage in liquid staking and potentially earn rewards from EigenLayer and the respective protocol.

Growing Popularity and AirDrop Initiatives

Popular liquid re-staking protocols such as EtherFi, Renzo, and Kelp are continuing to actively process ETH deposits, withdrawals, and issuing derivative tokens. Users are encouraged to participate in AirDrops from EigenLayer and these protocols to increase their chances of receiving token rewards. For instance, users redeeming tokens through Kelp can earn points from both EigenLayer and KelpDAO, maximizing their reward potential.

As more users utilize liquid re-staking protocols to deposit funds into EigenLayer, the prospect of dual AirDrops becomes more enticing. EigenLayer incentivizes users with points for deposit transactions, improving their odds of earning tokens from the platform. This dual incentive approach demonstrates a growing harmony between liquid staking protocols and EigenLayer.