BTC - Surging 'Re-Staking' Craze Draws $18B In Crypto Assets As Investors Seek Higher Returns | Benzinga
More than $18 billion in cryptocurrency has flowed into new “re-staking” platforms, attracting investors with the promise of higher yields.
What Happened: The popularity of “re-staking” is growing rapidly, with over $18 billion worth of crypto assets now locked in these platforms. This trend is driven by traders seeking higher returns as Bitcoin (CRYPTO: BTC) approaches all-time highs and Ethereum (CRYPTO: ETH) sees significant gains this year, Reuters reported.
Seattle-based start-up EigenLayer has been at the forefront of this boom. The company, which raised $100 million from Andreessen Horowitz in February, has seen its platform’s assets surge from less than $400 million to $18.8 billion in just six months.
EigenLayer’s founder, Sreeram Kannan, explained that re-staking builds on the traditional crypto practice of staking, allowing users to lock up their tokens for validation purposes and earn yields.
“When there's anything that has collateral on collateral it's not ideal, it adds a new element of risk ...