High Queued Withdrawals: TVL’s Downward Trend
EigenLayer, the largest Ethereum restaking protocol, has experienced a high number of withdrawal requests following disappointment over its planned EIGEN token airdrop. According to data from Dune, mass withdrawals began on April 29 and have continued over the past three days, with a total of 12,412 withdrawals. This represents approximately 11.6% of EigenLayer’s unique depositors. The exclusion of several jurisdictions, including the United States, Canada, and certain African and Asian countries, from the airdrop has caused widespread disappointment. The protocol currently has over 107,000 unique depositors.
The withdrawal requests will have an impact on EigenLayer’s total value locked (TVL), which currently stands at $14.8 billion. Although the size of the individual withdrawals is not yet known, the 11.6% withdrawal rate would reduce the TVL to just above $13 billion. Since EigenLayer has a seven-day withdrawal processing period, the full effects of the mass withdrawals will only become visible in the coming weeks.
Anndy Lian, an intergovernmental blockchain expert and author, believes that the exclusion of key economic jurisdictions from the airdrop will have a significant impact on EigenLayer’s TVL. He suggests that participants from these regions may have played a crucial role in contributing to the protocol’s TVL through active restaking. The disappointment caused by the exclusion could result in a decrease in the overall TVL.
The disappointment over EigenLayer’s airdrop has led many “airdrop farmers” to seek alternative restaking protocols. One such protocol is Karak, which has seen a 20.5% increase in its TVL to $439 million in the past week, making it the second-largest restaking protocol on Ethereum, according to DefiLlama. There is speculation that Karak has a good chance of becoming the next EigenLayer in light of the EIGEN airdrop debacle.
In addition to the disappointing airdrop, Karak offers technical benefits and more flexible restaking tokens compared to EigenLayer. According to Anndy Lian, Karak introduces unique features such as multi-asset restaking and a plug-and-play development environment. These features could attract developers and users seeking a more versatile restaking platform.
10 thoughts on “High Queued Withdrawals: TVL’s Downward Trend”
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Karak’s features could be a game-changer in the restaking space. It’s no wonder they’re gaining popularity.
It’s a lesson for other protocols to learn from EigenLayer’s mistakes. Inclusivity is important in the crypto space.
Karak seems to be offering more flexibility and benefits compared to EigenLayer. That could make all the difference.
The withdrawal processing period will definitely give us a clearer picture of the situation. Let’s wait and see.
I’m impressed by Karak’s growth in such a short time. They’re gaining traction for a reason.
The exclusion of certain countries is definitely hurting EigenLayer. It’s a lesson in the importance of inclusivity.
The exclusion of key jurisdictions was a bad move by EigenLayer. They should have thought it through.
The withdrawal rate is staggering! EigenLayer should have anticipated the backlash.
It’s a shame to see such a promising project facing disappointment like this.
Karak seems like a promising option for those looking for a more versatile restaking platform.