Speaking of how restaking could change DeFi, one of the most talked-about developments in cryptocurrency is restaking in DeFi. It enables users to secure several decentralized services, such as bridges and oracles, by reusing their previously staked ETH. Discover how DeFi’s restaking boom is fueled by L2 integrations and layered yields made possible by EigenLayer and liquid staking.
It’s easy to see the story that has dominated DeFi this summer: restaking has moved from the speculative periphery to the forefront. Restaking was invented by EigenLayer. With peaks exceeding $20 billion and a Total Value Locked (TVL) of over $18 billion, it has firmly shot to prominence.
EigenLayer is becoming one of the biggest DeFi protocols alongside industry titans like Lido, which is more than simply growth—it’s a financial tectonic shift.
What Is Restaking?
Fundamentally, restaking turns staked ETH into a multipurpose tool rather than a single-use asset. These ETH holdings, which were first staked to protect Ethereum’s Proof-of-Stake mechanism, can now be repurposed to protect other services, referred to as Actively Validated Services (AVSs) in EigenLayer’s ecosystem.
As a result, token holders and validators can generate additional profits without investing additional funds, significantly increasing capital efficiency. Imagine using the same vehicle to deliver for DoorDash and staking it to drive for Uber. That is what restaking is all about.
Why the Restaking Boom?
1. Institutional Appetite for Layered Yield
Professional players are now pursuing systematic, risk-adjusted payouts rather than the erratic rewards of meme currencies. That’s exactly what restaking offers: a predictable return based on Ethereum’s strong security rather than risky bets.
2. Shared Security for Smaller Protocols
Robust validator sets were usually not able to be bootstrapped by AVSs such as oracles, DA layers, and sequencing systems. That is altered by restaking. By utilizing Ethereum’s validator base, these businesses are now able to lower the barrier to secure DeFi innovation.
EigenLayer is now the driving force for the mainstreaming of restaking. It has turned restaking from a small experiment into a multibillion-dollar sector, rewriting the playbook for how staked ETH can work harder, smarter, and across more levels of the Ethereum economy as the first mover and unchallenged leader in this burgeoning category.
What Is EigenLayer, and Why It Matters
EigenLayer is a unique infrastructure layer that transforms Ethereum’s staking dynamics. EigenLayer allows for the restabling of both ETH and liquid-staked tokens (LSTs), securing “Actively Validated Services” (AVS) and increasing yield and capital efficiency without the need for specialized validator networks.
Double-Dip Utility, One Asset
Restakers get tiered benefits: they continue to earn protocol-level staking profits while also receiving additional incentives from AVSs. The double-layered yield technique maximizes the earning potential of staked ETH by utilizing the same capital in different ways.
Market Momentum: From Startup Idea to $18B+ TVL
The reaction has been intense. EigenLayer’s TVL increased from $1.1 billion to over $18 billion in 2024–2025, demonstrating the allure of restaking. It now accounts for more than 85% of the restaking market, solidifying its position as the leading protocol in this developing field.
EigenLayer is a fundamental change in the way Ethereum vesting, yield, and security interact, rather than merely a small enhancement. Restaking increases capital efficiency and speeds up DeFi staking innovation by offering twice-fold profits on the same stake and lowering onboarding costs for new protocols.
If EigenLayer is the driving force behind the restaking revolution, AVSs and liquid restaking tokens are the gears that propel it forward. When ETH or LSTs are restaked, they no longer only secure Ethereum’s consensus; they become programmable capital, ready to be combined into different dividend streams and DeFi techniques.
This is where the true magic of restaking occurs: layered incentives, deeper integrations, and a fast-expanding design space for on-chain innovation.
FAQ
What Is the Difference Between Staking and Restaking?
Staking occurs when you lock up ETH to help secure the Ethereum network while earning benefits. Restaking allows you to use the same staked ETH to secure other protocols, such as oracles, bridges, or data layers, without requiring additional ETH. Supporting several systems earns you additional benefits, but it also puts you at more risk.
What Is an AVS in Restaking?
Similar to an oracle, bridge, or data layer, an AVS (Actively Validated Service) is a blockchain-based system that requires validators to maintain security. It makes use of Ethereum’s staked ETH through restaking rather than establishing its own validator network. By doing this, the AVS is able to “borrow” Ethereum’s security without having to start from scratch.
By using Actively Validated Services (AVSs) to stack extra chances on top of base staking payouts, restaking turns Ethereum from a static revenue generator into a dynamic yield engine. This is where the true power of restaking lies.
