Bittime - Coinbase discusses the potential importance of re-staking for Ethereum returns in the long term, especially if original staking issuance declines.
Since the Ethereum blockchain transitioned to a Proof-of-Stake (PoS) network following The Merge event in September 2022, there has been a sharp increase in liquid staking protocols on the platform.
However, resets are gaining more attention recently with the emergence of liquid reset tokens (LRTs).
Eigen Layer Becomes Second Largest DeFi Protocol on Ethereum
EigenLayer has emerged as the second-largest Ethereum DeFi protocol by total value locked (TVL), which currently stands at $12.4 billion, thanks to its well-established Ethereum staking infrastructure and excess security budget.
EigenLayer facilitates validators to earn additional rewards by securing actively validated services (AVS) by restaking staked ETH.
EigenLayer's incredible TVL growth places it as runner-up to Lido, the leading Ethereum liquid staking protocol.
Check Today's Crypto Market:
The EigenLayer realignment protocol launched on the Ethereum mainnet in June 2023, with AVS to be introduced in the next phase of the multi-phase rollout in the second quarter of 2024.
This innovative concept of “refetching” by EigenLayer allows validators to secure new Ethereum features, such as data availability layers, rollups, bridges, oracles, and cross-chain messaging, potentially generating additional rewards.
This introduces a new revenue stream for validators in the form of “security as a service”.
Also Read: Ethereum in Turmoil: Latest Price Analysis and Market Trends
The Future of Token Restaking
Coinbase also noted the potential importance of re-staking as a return path for ETH, especially if there is a decline in original staking issuance due to increased participation in staking activity.
However, Coinbase also highlighted expected challenges for Liquid Retaking Tokens (LRTs) in the near term, as Actively Validated Services (AVS) yields are relatively low post-launch.
Also Read How to Buy Crypto:
Notably, to date no AVS has launched on mainnet, with EigenDA, the first AVS expected to launch in early Q2 2024.
EigenDA will likely function as a data availability layer similar to Celestia or Ethereum blob storage.
Considering the success of the Dencun upgrade in significantly reducing layer-2 (L2) fees, Coinbase anticipates that EigenDA will offer another avenue for cost-effective L2 transactions, contributing to Ethereum's wide range of tools.
Check Crypto Prices Today:
How to Buy Crypto on Bittime
You can buy and sell crypto assets in an easy and safe way via Bittime . Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti.
To be able to buy crypto assets on Bittime , make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application.
Learn Complete Guide How to Buy Crypto on Bittime .
Monitor price chart movements of Bitcoin (BTC) , Ethereum (ETH) , Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.
Also Read:
GF Securities Launches Tokenized Securities in Hong Kong
Token Unlock Week: Potential Turning Point for ARB, AXS, and More
What is Austrian Economics? Understanding the Basics of Austrian Economics
DISCLAIMER: This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.
Comments
0 comments
Please sign in to leave a comment.