TechFlow reported on July 25, according to Coindesk, that although Ethereum's price remains similar to June levels—currently trading at $3,200—the total value locked (TVL) on EigenLayer has dropped 13% ($2.28 billion) over the past 30 days, falling to $15.1 billion. Restaking protocols such as Renzo and Kelp have seen their TVL decline by 45% and 22%, respectively.
This outflow is primarily attributed to the volatility of points systems and limited returns from restaking protocols. Another factor is users reallocating capital to other projects in hopes of earning more convertible points for potential airdrops, thereby maximizing overall returns.
In contrast, Ether.fi achieved a $100 million increase in TVL during the same period. Yield-generating platforms like Ethena offer more competitive returns compared to restaking protocols—Renzo offers an annual percentage yield (APY) of 3.43%, while Ethena exceeds 10%, making higher-yield options more attractive to investors.
Restaking is a strategy designed to generate additional yields on ETH already staked on the Ethereum mainnet. It enables investors to move funds across different protocols in pursuit of higher returns. However, the current market trend indicates weakening investor confidence in restaking, which could impact future capital inflows.
