Ethereum Staking Protocols Witness Plummeting TVL

IconCryptoNewsTerminal Staff18 Jul, 2024

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Ethereum Staking Protocols Witness Plummeting TVL

According to The Block, Total Value Locked (TVL) in various staking protocols has experienced a significant decline recently. EigenLayer, an Ethereum (ETH) staking protocol, saw a net outflow of $68 million last week, reducing its TVL to $14.6 billion, a notable 27% decrease since early June. Lido, another prominent staking platform, has also faced a significant setback, with its TVL halving over the past month. The decline in TVL is not isolated to EigenLayer and Lido, as other protocols such as Phuture Finance, KelpDAO, and Swell have also recorded a collective 22% decrease in their TVL. The exact reasons behind this sudden drop in TVL are still under scrutiny by market analysts, but it could be attributed to a combination of factors including market volatility, cautious investor sentiment, and the highly anticipated Ethereum Merge.

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