Ethereum, the second-largest digital asset by market capitalization, is buying and selling close to the essential $4,000 mark for the primary time since December 2021, up 15% up to now week.
Amid this worth improve, main restoration protocol EigenLayer is now the second-largest DeFi protocol by way of whole worth, in accordance with knowledge from DeFillama.
ETH worth
Ethereum is at present priced at $3954, after rising 4% over the previous day Crypto Slates information.
This upward motion in Ethereum’s worth may be linked to the joy surrounding the upcoming Dencun improve scheduled to go stay on the mainnet on March 13. Dencun brings proto-dankhardening to Ethereum, a strategic transfer geared toward reducing transaction charges for layer-2 blockchains, tackling scalability points head-on.
Moreover, the market is anticipating the potential approval of a spot ETH ETF by the US SEC. Ought to this approval materialize, it might function a serious catalyst that might drive the continued worth improve even additional.
The rising TVL of EigenLayer
EigenLayer’s TVL rose to a document excessive of $11.7 billion through the week, surpassing Aave’s TVL of $11.4 billion.
Notably, on March 5, the protocol witnessed a staggering constructive change of $790 million in TVL, marking the very best day by day improve since February 9, in accordance with blockchain analytics agency IntoTheBlock.
The expansion trajectory of EigenLayer’s TVL has been exceptional, particularly within the final 30 days, witnessing a fivefold improve from round $2 billion originally of the earlier month to the present determine. Impressively, whole property dedicated to the protocol have skyrocketed to over 3 million ETH, up from lower than 1 million in early February.
This improve in TVL intently follows EigenLayer’s choice to elevate token reinstatement restrictions and abolish TVL limits for particular person tokens final month. Group members anticipate these modifications to grow to be everlasting someday later this yr.
In the meantime, EigenLayer’s signature reprise mannequin attracted vital funding, most notably a $50 million Collection A funding spherical in March 2023 led by Blockchain Capital and a $100 million funding from Andreessen Horowitz in February 2024.
Nevertheless, EigenLayer’s speedy development has led to heightened safety scrutiny, main the undertaking to supply rewards of as much as $100,000 to researchers who uncover the platform’s reasonable or greater safety vulnerabilities.