{"id":403046,"date":"2024-03-08T09:54:20","date_gmt":"2024-03-08T09:54:20","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=403046"},"modified":"2024-03-08T09:54:20","modified_gmt":"2024-03-08T09:54:20","slug":"ethereum-edges-near-4000-as-eigenlayer-becomes-second-largest-defi-protocol","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/ethereum-edges-near-4000-as-eigenlayer-becomes-second-largest-defi-protocol\/","title":{"rendered":"Ethereum edges near $4000 as EigenLayer becomes second-largest DeFi protocol"},"content":{"rendered":"<p>Ethereum, the second-largest digital asset by market capitalization, is <a href=\"https:\/\/cryptoslate.com\/ethereum-price-hits-two-year-high-as-network-fees-soar-sec-stalls-on-etf-decision\/\">trading near the pivotal $4000 milestone for the first time<\/a> since December 2021, up 15% during the past week.<\/p>\n<p>Amid this price rally, leading restaking protocol EigenLayer is now the second-largest DeFi protocol in terms of total value locked, according to DeFillama <a href=\"https:\/\/defillama.com\/protocol\/eigenlayer?denomination=ETH\">data<\/a>.<\/p>\n<h2>ETH's price<\/h2>\n<p>Ethereum is currently priced at $3954 following a 4% gain during the past day, according to <em>CryptoSlate's<\/em> data.<\/p>\n<p>This upward movement in Ethereum's value can be linked to the excitement surrounding the upcoming Dencun upgrade <a href=\"https:\/\/cryptoslate.com\/ethereum-devs-confirm-dencun-upgrades-mainnet-deployment-grayscale-calls-it-eths-coming-of-age-moment\/\">scheduled to go live<\/a> on the mainnet by Mar. 13. Dencun brings proto-danksharding to Ethereum, a strategic move aimed at lowering transaction expenses for layer-2 blockchains, thus tackling scalability concerns head-on.<\/p>\n<p>Moreover, the market is anticipating the <a href=\"https:\/\/cryptoslate.com\/ethereum-price-hits-two-year-high-as-network-fees-soar-sec-stalls-on-etf-decision\/\">potential approval of a spot ETH ETF<\/a> by the US SEC. Should this approval materialize, it could serve as a significant catalyst propelling the ongoing price surge even further.<\/p>\n<p><span style=\"color: #333333; font-size: 22px; font-weight: bold;\">EigenLayer's soaring TVL<\/span><\/p>\n<p>EigenLayer's TVL soared to an all-time peak of $11.7 billion during the week, surpassing Aave's TVL of $11.4 billion.<\/p>\n<p>Notably, on Mar. 5, the protocol witnessed a staggering $790 million positive change in TVL, marking its highest daily surge since Feb. 9, according to blockchain analytical firm IntoTheBlock.<\/p>\n<figure id=\"attachment_403066\" aria-describedby=\"caption-attachment-403066\" style=\"width: 900px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-403066\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2024\/03\/GIFSL4eWMAAERmg.jpg\" alt=\"EigenLayer\" width=\"900\" height=\"485\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2024\/03\/GIFSL4eWMAAERmg.jpg 900w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2024\/03\/GIFSL4eWMAAERmg-300x162.jpg 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2024\/03\/GIFSL4eWMAAERmg-768x414.jpg 768w\" sizes=\"(max-width: 900px) 100vw, 900px\" \/><figcaption id=\"caption-attachment-403066\" class=\"wp-caption-text\">EigenLayer TVL Variations (Source: IntoTheBlock)<\/figcaption><\/figure>\n<p>The growth trajectory of EigenLayer's TVL has been remarkable, especially in the past 30 days, witnessing a five-fold surge from approximately $2 billion at the start of the previous month to its current figure. Impressively, the total assets locked on the protocol have <a href=\"https:\/\/cryptoslate.com\/ethereum-restaking-protocol-eigenlayer-tvl-surges-amid-rising-eth-staking\/\">skyrocketed<\/a> to more than 3 million ETH, up from under 1 million in early February.<\/p>\n<figure id=\"attachment_403065\" aria-describedby=\"caption-attachment-403065\" style=\"width: 1093px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-403065\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2024\/03\/Screenshot-2024-03-08-102327.jpg\" alt=\"Eigenlayer\" width=\"1093\" height=\"388\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2024\/03\/Screenshot-2024-03-08-102327.jpg 1093w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2024\/03\/Screenshot-2024-03-08-102327-300x106.jpg 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2024\/03\/Screenshot-2024-03-08-102327-1024x364.jpg 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2024\/03\/Screenshot-2024-03-08-102327-768x273.jpg 768w\" sizes=\"(max-width: 1093px) 100vw, 1093px\" \/><figcaption id=\"caption-attachment-403065\" class=\"wp-caption-text\">EigenLayer's Total Value Locked. (Source: DeFillama)<\/figcaption><\/figure>\n<p>This surge in TVL closely follows EigenLayer's decision to lift token restaking restrictions and eliminate TVL caps for individual tokens last month. Community members expect these changes to become permanent sometime later this year.<\/p>\n<p>Meanwhile, EigenLayer's distinctive restaking model attracted significant investments, notably a $50 million Series A funding round in March 2023 led by Blockchain Capital and a $100 million <a href=\"https:\/\/x.com\/eigenlayer\/status\/1760666731859833048?s=20\">investment<\/a> from <a href=\"https:\/\/cryptoslate.com\/companies\/a16z\/\">Andreessen Horowitz<\/a> in February 2024.<\/p>\n<p>However, EigenLayer's rapid growth has prompted heightened security scrutiny, prompting the project to offer <a href=\"https:\/\/www.blog.eigenlayer.xyz\/security-bounty-competition-on-eigenlayer-by-cantina\/\">rewards<\/a> of up to $100,000 to researchers uncovering the platform's medium or higher severity security issues.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Ethereum, the second-largest digital asset by market capitalization, is trading near the pivotal $4000 milestone for the first time since December 2021, up 15% during the past week. Amid this price rally, leading restaking protocol EigenLayer is now the second-largest DeFi protocol in terms of total value locked, according to DeFillama data. ETH&#8217;s price Ethereum [&hellip;]<\/p>\n","protected":false},"author":720,"featured_media":403053,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[46940,77968],"tags":[79294,76128,72190],"prediction_market_topic":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Ethereum edges near $4000 as EigenLayer becomes second-largest DeFi protocol<\/title>\n<meta name=\"description\" content=\"Ethereum nears $4000 milestone amid DeFi restaking protocol EigenLayer&#039;s remarkable rise to more than $11 billion TVL.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptoslate.com\/ethereum-edges-near-4000-as-eigenlayer-becomes-second-largest-defi-protocol\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Ethereum edges near $4000 as EigenLayer becomes second-largest DeFi protocol\" \/>\n<meta property=\"og:description\" content=\"Ethereum nears $4000 milestone amid DeFi restaking protocol EigenLayer&#039;s remarkable rise to more than $11 billion TVL.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cryptoslate.com\/ethereum-edges-near-4000-as-eigenlayer-becomes-second-largest-defi-protocol\/\" \/>\n<meta property=\"og:site_name\" content=\"CryptoSlate\" \/>\n<meta property=\"article:published_time\" content=\"2024-03-08T09:54:20+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2024\/03\/ethereum-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Oluwapelumi Adejumo\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:site\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Oluwapelumi Adejumo\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"NewsArticle\",\"@id\":\"https:\/\/cryptoslate.com\/ethereum-edges-near-4000-as-eigenlayer-becomes-second-largest-defi-protocol\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/cryptoslate.com\/ethereum-edges-near-4000-as-eigenlayer-becomes-second-largest-defi-protocol\/\"},\"author\":{\"@type\":\"Person\",\"@id\":\"https:\/\/cryptoslate.com\/author\/oluwapelumi-adejumo\/#person\",\"name\":\"Oluwapelumi Adejumo\",\"url\":\"https:\/\/cryptoslate.com\/author\/oluwapelumi-adejumo\/\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/cryptoslate.com\/author\/oluwapelumi-adejumo\/\"},\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/cryptoslate.com\/author\/oluwapelumi-adejumo\/#authorimage\",\"url\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2025\/12\/profile-photo-oluwapelumi-adejumo-300x300.jpg\",\"contentUrl\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2025\/12\/profile-photo-oluwapelumi-adejumo-300x300.jpg\",\"caption\":\"Oluwapelumi Adejumo\"},\"jobTitle\":\"Senior Reporter\",\"description\":\"Oluwapelumi values Bitcoin's potential. 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