The post Why Everyone in Crypto Is Talking About Liquid Restaking Tokens! appeared on BitcoinEthereumNews.com.

Liquid Restaking Tokens (LRTs) enhance Ethereum staking efficiency, enabling broader use of capital in DeFi protocols. In 2024, the total value locked in LRTs skyrocketed by over 8,300%, reaching $13.8 billion from $164 million. The Decentralized Finance (DeFi) sector is experiencing significant growth due to the adoption of Liquid Restaking Tokens (LRTs). These tokens are streamlining the Ethereum staking process and enhancing how capital is utilized within the DeFi space. LRTs provide a liquid representation of staked tokens, allowing these assets to be used in other DeFi protocols without the need to lock in capital unnecessarily. This functionality is pivotal for increasing the flexibility and efficiency of capital in blockchain ecosystems. Source: Dune In 2024, the total value locked (TVL) in LRTs escalated dramatically, marking an increase of over 8,300%. This surge brought the TVL from $164 million at the beginning of the year to $13.8 billion. This increase indicates a growing confidence and utilization of LRTs in the DeFi market. Or Harel, the Token Engineering Analyst at Node Capital, said: “Following ‘points rush’ for potential airdrops led to demand far outstripping supply in EigenLayer’s deposit caps. Leading Liquid Restaking Protocols (LRPs) capitalized on this technical arbitrage opportunity. One of the many complexities they abstracted away was EigenPods management, abstracting this and related processes into a token. In a short period, these LRPs accumulated billions in stakers’ capital and built sophisticated operator infrastructure, positioning themselves as key facilitators of the supply side and gaining a strategic advantage in influencing the demand side of Actively Validated Services (AVSs).” EigenLayer has  a crucial role in the expansion of liquid restaking protocols. According to a report by Node Capital, EigenLayer facilitated this growth by simplifying the management of certain technical elements into a tokenized form, which has made these processes more accessible to…

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Filed under: News - @ August 1, 2024 9:22 am