Kraken’s $1.07M ETH Deposit into Eigencloud Highlights Restaking Paradox
- Kraken deposited approximately 50,600 ether, valued at $1.07 million, into Eigencloud on May 26.
- Eigencloud’s EIGEN token trades at $0.25, about 96% below its all-time high of $5.65.
- Eigencloud maintains a total value locked (TVL) of $6.54 billion but operates with a -$12.7 million annual earnings deficit.
- The protocol spends $56.77 million in incentives annually while generating only $13.6 million in fees.
Kraken’s substantial deposit into Eigencloud underscores institutional interest in Ethereum restaking despite the underperformance of the EIGEN token and significant financial deficits within the protocol.
This move suggests that institutions like Kraken are more focused on staking yields rather than token speculation, as evidenced by the stark contrast between Eigencloud’s robust TVL and the declining EIGEN token price.
