Restaking Incentives Decline as Profits Plummet for Major Protocols
- EigenLayer peaked at $19.7 billion, while the restaking category held $10.02 billion on Sept. 8.
- Liquid staking generated $27.35 million in fees from $51.87 billion secured.
- Restaking tokens saw a growth of over 1,000% in early January.
- The five largest liquid restaking tokens reported a combined gross profit of $953,350 in Q2.
- Ordinary staking earns approximately fifty-three times more per dollar secured than restaking.
The decline in profitability for major protocols is attributed to the end of points programs and the introduction of slashing penalties, which diminished incentives for restaking without additional yield compensation.
As of now, restaking has become less viable, with top protocols barely making profits compared to ordinary staking’s substantial returns—$99,977 in fees versus millions generated by other staking methods.(Source)
