DeFi | Ethereum Liquid Re-Staking Drops By ~37% in Just 6 Months

These reductions are largely due to the fading hype around airdrops and the rotation of capital into other yield opportunities.

CryptoGuru··3 min read

The Ethereum liquid restaking sector has experienced a significant downturn, with the total value locked (TVL) across protocols dropping approximately 37% from its December 2024 peak of over $18.3 billion to around $12 billion, according to DeFiLlama data.

EigenLayer, a middleware protocol enabling users to restake ETH for shared security across applications, has seen its TVL decrease from a June 2024 peak of 5.4 million ETH to 4.4 million ETH. This decline is attributed to tightened deposit caps aimed at managing risk as the protocol scales.

Other liquid restaking protocols have also faced declines:

  • Kelp: Currently holds around 557,000 ETH, a 10% drop from its April 2024 peak of approximately 615,000 ETH.
  • Renzo: Experienced a sharper decline, down 61% from a high of 1.04 million ETH to just 387,000 ETH.


These reductions are largely due to the fading hype around airdrops and the rotation of capital into other yield opportunities. Sid Powell, CEO of Maple Finance, noted that the initial TVL surge was driven by early EigenLayer incentives and the novelty of the model, which naturally tapered as rewards stabilized or diminished.


Despite the broader retreat, Ether.fi has bucked the trend. Its TVL has steadily increased since January 2024, growing from just 44,000 ETH to 2.75 million ETH. This growth is attributed to new integrations, improved user onboarding, and the launch of its ETHFI governance token in spring 2024. ETHFI is currently trading at $1.31, with a market capitalization of $388 million.

Ether.fi’s success is also linked to its focus on offering both points exposure and actual ETH staking yield, making it appealing in a risk-off market. Additionally, its diverse selection of tools, including plans to build a full banking suite with other asset types and credit cards combined with points and other incentives, has helped drive TVL.

While Ethereum’s liquid restaking sector has faced a downturn, Solana’s DeFi ecosystem has experienced remarkable growth, reaching a total value locked (TVL) of over $10 billion in early 2025. This surge is attributed to the expansion of decentralized exchanges (DEXs), lending platforms, and liquid staking protocols.


Notably, DEXs like Raydium and Jupiter have seen significant increases in trading volumes, with daily volumes surpassing $10 billion, outpacing Ethereum’s activity. Additionally, lending protocols such as Kamino have expanded their offerings, contributing to the ecosystem’s robustness.


The introduction of memecoins, including the “TRUMP” token, has further fueled Solana’s DeFi activity, attracting substantial liquidity and user engagement. These developments, combined with Solana’s high throughput and low transaction fees, have positioned it as a formidable player in the DeFi space, contrasting Ethereum’s current challenges in the liquid restaking sector.

See also


As the restaking sector evolves, protocols that offer sustainable yields and innovative features may continue to attract users, even as initial incentives wane.

 

 

 

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