Kraken deposited about 50,600 ether, worth roughly $1.07 million, into Eigencloud, an Ethereum restaking protocol. Restaking lets existing ETH stakers reuse staked collateral as economic security for additional protocols without creating new validator sets. Eigencloud enables actively validated services to borrow Ethereum’s security. Eigencloud has about $6.54 billion in TVL, but its EIGEN token trades around $0.25, far below its $5.65 all-time high. The protocol shows an annual earnings deficit of about -$12.7 million, with $56.77 million in incentives and $13.6 million in fees, indicating incentives outweigh fee revenue.
"Kraken deposited approximately 50,600 ether, worth roughly $1.07 million, into Eigencloud, the Ethereum restaking protocol formerly known as Eigenlayer. The deposit adds to a growing body of evidence that institutional participants are continuing to engage with restaking infrastructure even as the sector's native tokens have significantly underperformed."
"Restaking is a mechanism that allows ETH stakers (i.e. those who have already committed ether to validate the Ethereum network) to re-use that staked collateral as economic security for additional protocols. Eigencloud introduced restaking as a new cryptoeconomic primitive in 2023, enabling other applications known as actively validated services (AVSs) to borrow Ethereum's existing security without bootstrapping independent validator sets from scratch."
"Eigencloud's TVL Strength Contrasts With EIGEN Token Weakness. Eigencloud has a strong TVL base of $6.54 billion on Ethereum, the largest in the restaking category, yet EIGEN currently trades at $0.25, compared to its all-time high of $5.65, a decline of approximately 95.6%."
"Eigencloud runs a -$12.7M annual earnings deficit, spending $56.77M in incentives vs $13.6M in fees. Despite a strong TVL base, the gap between TVL strength and token underperformance suggests a pattern common in DeFi, where a protocol attracts substantial capital while its governance or utility token faces sustained selling pressure."
Read at news.bitcoin.com
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