Spot Bitcoin exchange-traded funds are set to begin trading following official approval, marking a significant moment for the crypto industry. The focus now shifts to the next major narrative — Ethereum restaking.
CoinGecko, a crypto market analytics platform, has introduced a new category for restaking tokens. This has led analysts to predict that this could be a significant growth area this year.
Restaking allows users to stake the same ETH on both Ethereum and other protocols, securing all these networks simultaneously and leveraging existing trust networks. By utilizing Ethereum’s validators and staked tokens, smaller and newer blockchains can benefit from its robust security and trust system, reducing the risks of attacks or failures.
DeFi researcher Ignas has expressed his belief that restaking will be the fastest-growing category in 2024. According to the new CoinGecko category, the restaking market capitalization is around $300 million. It currently lists a few restaking platform tokens, which have seen a surge in price over the past 24 hours.
Pendle Finance is the largest restaking platform, with a market capitalization of $164 million. Its native PENDLE token has surged by 20% on the day to reach $1.73, just 30% down from its May 2021 peak. Picasso (PICA) is the second largest restaking token by market cap, and it jumped 20% in value on the day. PICA prices are currently $0.024, cooling from its all-time high last week.
Restake Finance (RSTK) has skyrocketed 42% on the day to reach an all-time high of $2.64 on January 10. EigenLayer, one of the largest restaking middleware platforms, launched to mainnet in June 2023. This venture capital-backed platform doesn’t have its own native token but provides the ability to stake other liquid staking tokens. It currently has a total value locked of $1.7 billion.
The bedrock asset for all these restaking initiatives is Ethereum, and its native ETH asset has surged today. ETH prices have jumped 9.4% to top $2,600 for the first time in almost two years. After months of lackluster performance, the asset is finally outperforming its big brother. Furthermore, the big move has pushed Ethereum’s market cap back over $300 million, giving it a 17% share of the total crypto market.
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| Information | Details |
|---|---|
| Geography | Global |
| Countries | |
| Sentiment | positive |
| Relevance Score | 1 |
| People | Ignas |
| Companies | Restake Finance, Pendle Finance, Ethereum, CoinGecko, EigenLayer, BeInCrypto, Trust Project, Picasso |
| Currencies | Restake Finance, Ethereum, Pendle, Bitcoin, Picasso |
| Securities | None |
