EigenLayer Locks Up $10.4 Billion, Surpassing Aave

• EigenLayer's total value locked (TVL) has surpassed that of the lending protocol Aave, reaching $10.4 billion following the temporary removal of a cap on staking amounts.
• EigenLayer's TVL reached an all-time high of $11 billion on March 5, surpassing Aave's peak TVL of $10.7 billion.
• Despite concerns over the calculation of restaking TVL, EigenLayer has seen significant growth, increasing its TVL by 382.5% after lifting its staking cap on February 5.

The total value locked (TVL) of the Ethereum staking protocol EigenLayer has surpassed that of the lending protocol Aave, with $10.4 billion worth of cryptocurrency committed to the system following the temporary removal of a cap on the amount of cryptocurrency users may stake.

According to DefiLlama statistics, EigenLayer reached an all-time high TVL of $11 billion on March 5, surpassing Aave's 21-month peak TVL of $10.7 billion. EigenLayer is now the second-largest Decentralized Finance (DeFi) protocol by TVL, after staking powerhouse Lido.

EigenLayer's TVL is currently $10.4 billion, while Aave's is $10.35 billion. Both have somewhat decreased.

Lido Staked ETH (stETH), which is given to ether staking on Lido, is one example of a currency that users can restaste using restaking protocols like EigenLayer and its smaller competitor, the Octopus Network.

The technique has generated debate; supporters claim it can give further incentives to Ethereum users who have already staked their ETH, while detractors argue it generates too much leverage.

After EigenLayer temporarily lifted its staking cap on February 5 in an effort to encourage more growth, the company's TVL began to rise and has since increased by 382.5%.

Restaking TVL Calculation and Protocol Developments

In a March 5 X post, Solana Foundation strategy chief Austin Federa questioned how restaking TVL is calculated in relation to the protocol's flip of Aave, stating that he believes assets obtained via staking, such as stETH, shouldn't be considered because their value is theoretically locked on another protocol.

Federa stated, "If we're not going to count staked native assets as TVL, then I don't think restaking, or liquid staking, should be counted as TVL."

EigenLayer has over 115,000 unique depositors, according to Dune Analytics data, while DefiLlama statistics reveal that 74% of staked tokens are Wrapped Ether (wETH) and stETH.

Token Terminal statistics shows that Lido has less than 430 daily active users, compared to over 5,700 for Aave.

Over the past two weeks, Aave has also encountered challenges. On February 21, longtime risk manager Gauntlet departed the company, citing challenges negotiating "inconsistent guidelines and unwritten objectives of the largest stakeholders."

Two months after agreeing to a one-year, $1.6 million contract with Aave, Gauntlet parted ways. It collaborated with competitor DeFi lending protocol Morpho a few days later, on February 28.

With over $55 billion in locked value across roughly 160 protocols, liquid staking protocols-where users receive a token 1:1 for their staked funds-are the largest category of DeFi protocols. Lido is the largest protocol by locked value, with $35 billion.

With only two protocols, restaking ranks sixth among the 125 projects that manufacture stablecoins through collateralized lending.