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Ether.fi Dominates Liquid Staking Sector with Over $3.74 Billion TVL

Ether.fi, a prominent platform in the liquid staking sector, continues to lead the market with a total value locked (TVL) exceeding $3.74 billion.

Recent data from The Block reveals that Ether.fi manages more than 1.03 million ETH, significantly surpassing its competitors. The closest contender, the Renzo protocol, trails behind with $2.9 billion in user deposits as of April 9, highlighting Ether.fi’s substantial lead in the space.

The liquid staking sector has experienced exponential growth in recent months, largely driven by deposits on the EigenLayer protocol. Ether.fi alone has attracted over $1.5 billion worth of deposits within the past month.

Notably, Ether.fi garnered attention last month when 120,000 ETH was staked from an address associated with Tron founder Justin Sun.

To further enhance its TVL, Ether.fi has launched a staking campaign named “staking frens.” Participants staking 1 ETH are rewarded with 1 ETHFI, the platform’s native token, daily until the campaign concludes on April 18. Additionally, stakers have the opportunity to earn a share of $500K USD worth of ZK tokens.

Ether.fi enables users to access restaking yields through the EigenLayer protocol, which operates atop the Ethereum blockchain. This protocol allows users to stake their ETH or Liquid Staking Tokens (LSTs) across various protocols.

Liquid restaking via EigenLayer offers the advantage of participating in diverse services while retaining the liquidity and accessibility of users’ ETH capital. By accepting ether deposits, these protocols restake them and issue derivative tokens like Liquid Restaking Tokens (LRTs), providing users with additional incentives to engage with the ecosystem and boosting TVL.

LRT protocols offer a viable alternative for users lacking the 32 ETH required for native staking, contributing to the significant asset accumulation within the top protocols. Currently, the TVL on EigenLayer stands at $13.58 billion, with LRT protocols accounting for over two-thirds of this figure, totaling $9.7 billion.

As demand for LRT protocols continues to surge, Google Cloud has launched its EigenLayer mainnet node operator, listed as a node operator on the Goerli testnet for EigenLayer.

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