More than 68 million USD was withdrawn from EigenLayer in the past week

EigenLayer is seeing a wave of user withdrawals with more than $68 million withdrawn from the protocol in the past week.

According to The Block, staking protocol EigenLayer has seen a negative inflow of $68 million in the past week. At its peak on July 11, EigenLayer recorded a record outflow day with more than 43,550 ETH (about 135 million USD) withdrawn from the protocol.

Under pressure from users to withdraw massively, EigenLayer's TVL has dropped about 22.4%, from a peak of $20.1 billion in early June to $15.6 billion at the time of writing. Figures show that EigenLayer lost more than $4.5 billion in TVL in just over a month.

However, EigenLayer still maintains its position in the top 2 largest DeFi protocols, just behind Lido, and far ahead of AAVE, Maker and ether.fi.

This downward trend is not only happening at EigenLayer, but other projects in the restaking segment have also seen a significant decline in TVL in recent days. Typically, the Liquid Restaking protocol invested by Binance Labs Renzo lost nearly half of its TVL in just one month, falling from 4.07 billion USD in early June to 2.065 billion USD TVL. Present. Other staking protocols like Puffer Finance, KelpDao, Swell, and Eigenpie have lost about 22% TVL on average compared to last month.

This is in stark contrast to the amount of ETH staking that has increased significantly as the Ethereum ETF nears its launch date, showing that users are no longer "interested" in staking projects when this field can be considered saturated. with too many "follow-up" projects being created.

It seems that the introduction of staking protocols to tokens has reduced the profit potential from airdrops, making these projects gradually become less attractive in the eyes of investors. In addition, the recent airdrop of Renzo and EigenLayer has lost favor with restaking projects, facing strong opposition from the tokenomics community.

EigenLayer then had to airdrop an additional 100 EIGEN for each participating wallet, and Renzo also adjusted tokenomics, airdrop schedule and reward conditions to appease public opinion.

Notably, staking protocols have not yet announced the launch of tokens and are emerging such as Symbiotic, known as a challenger to EigenLayer's dominance, which has exceeded its TVL of more than 1 billion USD after just one month of launch and is still increasing, showing how the attraction from airdrops has greatly impacted the TVL of staking projects recently.