Liquid restaking tokens comprise 73% of EigenLayer deposits and are the next evolution of liquid staking protocols like Lido or Jito. With a 7-day withdrawal period on EigenLayer, the barrier to exit is high, making liquidity and price pegging to ETH critical to the success of LRTs. This article analyzes the liquidity, volatility, and volume of the top 5 LRTS – Ether.fi, Renzo, Puffer, Swell, and Kelp DAO – finding that they are not incredibly liquid but have been slowly improving. The LRT market has winner-take-most characteristics since liquidity and integrations are critical to an LRT’s broader success.
Thursday, April 11, 2024