EigenLayer has recorded a significant increase in user assets, surpassing $900 million, by adjusting deposit caps for liquid staking assets. This change led to a substantial rise in total deposits, with the amount reaching the equivalent of 410,000 Ethereum on December 19, nearly quadrupling from a few days prior.
Before the update, EigenLayer had set a staking limit below 120,000 Ethereum and had paused deposit transactions. On December 18, the protocol raised the limit by setting a new target of 500,000 Ethereum, valued at $1.1 billion, thus propelling the total locked value from $250 million to over $900 million.
EigenLayer offers a protocol for users to deposit Ethereum into various liquid stake pools and stake their assets, with plans to allocate these funds to secure third-party networks. The protocol’s first phase was launched on the Ethereum mainnet in June.
During the launch, EigenLayer allowed users to deposit assets from three staking projects: Lido, Rocket Pool, and Coinbase. The protocol is now expanding to include six additional stake pools, potentially increasing activity as more people join the network and earn points, which might offer a chance to benefit from a future Eigen airdrop event.
Once the 500,000 Ethereum cap is reached, EigenLayer will pause deposit transactions for all users. EigenLabs completed a successful $50 million Series A funding round in March, led by Blockchain Capital.