Ethereum

ARPA

Wrapped Bitcoin

EigenLayer

The Eigen Foundation said it will allocate 1% of the EIGEN token supply to the Protocol Guild, a group of core developers responsible for maintaining the Ethereum layer-1 blockchain.
According to the Eigen Foundation, the funds will be used to support the continued work of the Protocol Guild, which currently has 180 members from 29 teams.
EigenLayer is a <a data-ct-non-breakable="null" href="https://cointelegraph.com/explained/what-is-eigenlayer-ethereums-restaking-protocol-explained" rel="null" target="null" text="null" title="null">restaking protocol on Ethereum</a>, which allows Staked Ether (<a data-ct-non-breakable="null" href="https://cointelegraph.com/lido-staked-eth-price-index" rel="null" target="null" text="null" title="null">stETH</a>) and other assets to be repurposed and staked multiple times. This gives investors additional yield opportunities while allowing other protocols to leverage Ethereum’s security.
This role has positioned EigenLayer as a critical component of the Ethereum network’s infrastructure, drawing both praise and concern from the Ethereum community.
<figure>
 <img alt="Eigen Foundation commits 1% of EIGEN supply to ETH Protocol Guild" src="https://s3.cointelegraph.com/uploads/2024-12/0193bcc9-ad56-763b-807c-45e7db52b108" title="">
 <figcaption style="text-align: center;">
 EIGEN token one-month price chart. Source: <a data-ct-non-breakable="null" href="https://coinmarketcap.com/currencies/eigenlayer/" rel="nofollow noopener" target="_blank" text="null" title="https://coinmarketcap.com/currencies/eigenlayer/">CoinMarketCap</a>
 </figcaption>
</figure>
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/eigenlayer-upgrade-restaking-rewards" rel="null" target="null" text="null" title="null">EigenLayer to upgrade restaking rewards</a>
<h2 id="restaking-captures-narrative-attention">Restaking captures narrative attention</h2>
Restaking has been touted as a way to <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/restaking-will-spark-next-big-rush-money-into-crypto" rel="null" target="null" text="null" title="null">bring fresh capital injections</a> into crypto and has the potential to create a new asset class as restaking becomes an outsourced form of security for blockchain protocols and decentralized applications (DApps).
Allowing protocols to use restaked assets for network security alleviates the burden of launching a token to secure the network. This can significantly lower the barrier to entry for developers and DApps.
According to DefiLlama, restaking protocols currently have about $26.9 billion in total value locked (TVL). EigenLayer comprises the majority of this TVL at about $18.2 billion.
<figure>
 <img alt="Eigen Foundation commits 1% of EIGEN supply to ETH Protocol Guild" src="https://s3.cointelegraph.com/uploads/2024-12/0193bcc7-06e3-7e26-a3bd-744722d32397" title="">
 <figcaption style="text-align: center;">
 Total value locked across liquid restaking protocols. Source: <a data-ct-non-breakable="null" href="https://defillama.com/protocols/Restaking" rel="nofollow noopener" target="_blank" text="null" title="https://defillama.com/protocols/Restaking">DeFiLllama</a>
 </figcaption>
</figure>
The popularity of EigenLayer helped the EIGEN token crack the top 100 cryptocurrencies by market capitalization in October. It has since fallen out of the top 100 and is currently <a data-ct-non-breakable="null" href="https://coinmarketcap.com/?page=2" rel="null" target="null" text="null" title="null">ranked</a> 108 by market cap.
In November, EigenLayer <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/eigenlayer-bolsters-restaking-bitcoin-yield-p2p-org-payouts" rel="null" target="null" text="null" title="null">expanded its restaking options</a> to include Wrapped Bitcoin products. The update allowed users to deposit uniBTC to the ARPA Network, which is a protocol built on EigenLayer, in return for a yield.
December data from DefiLlama showed the total value locked across the decentralized finance ecosystem is <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/defi-tvl-nears-2021-highs-liquid-staking-bitcoin-layer-2s" rel="null" target="null" text="null" title="null">nearing 2021 highs</a>. This surge in total value locked was partially attributed to liquid restaking products and the proliferation of wrapped Bitcoin instruments.
Magazine: <a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/ethereum-restaking-blockchain-dangerous/" rel="null" target="null" text="null" title="null">Ethereum restaking: Blockchain innovation or dangerous house of cards?</a>

Eigen Foundation commits 1% of EIGEN supply to ETH Protocol Guild

Table of Contents

Cointelegraph

Other articles published on Dec 12, 2024

Bitcoin Exchange OKX Announces Listing of a New Memecoin for Spot Trading! Here Are the Details

Cardano and Litecoin Price Targets for the Christmas Rally—Bold Predictions Revealed

Former Binance CEO CZ Talks, This Altcoin Has Surprisingly Soared

Hong Kong Evaluates Integrating Crypto Assets Amid Increased Global Financial Interest, Prioritiz...

Is It Too Late to Buy HAPPY? Happy Cat Price Soars 17% And This Might Be The Next Crypto To Explode

Trending Cryptocurrency Tokens on Avalanche Chain Today – DOGwifCROCS, BloodLoop Shard, GMX Coin

Join our free newsletter for daily crypto updates!