Validators Shift from Native ETH Staking to Restaking

Ethereum liquid restaking protocols reach $30 billion as validators seek higher yields.

The total value locked in Ethereum liquid restaking protocols has reached $30 billion. This growth is attributed to validators moving from native staking to more profitable instruments, reports The Block.

Strategy Shift

During times of market instability, native ETH staking was considered the safest option for earning income, experts noted. However, as the market has stabilized and DeFi protocols have shown resilience, participants have increasingly sought higher yields.

Liquid restaking allows users to earn staking rewards on ETH while also generating additional income. Users maintain liquidity through derivative tokens, which can be used in other DeFi applications.

Redistribution, Not Exit

Some observers viewed the withdrawal of funds from staking as a negative signal. However, data indicates that users are not leaving the Ethereum ecosystem; they are merely reallocating assets to more profitable instruments.

This is evidenced by the growth of leading protocols in the sector. Platforms like EtherFi and Eigenpie have significantly increased their market share since the beginning of the year.

Analysts at The Block noted that the sector is showing steady growth through to mid-2025. The trend indicates that Ethereum users are becoming more adept at income-generating strategies.

Back in August, Ethereum recorded the largest queue for staking withdrawals—over 910,000 ETH valued at $3.7 billion. A crypto analyst known as Bull Theory explained that the increase in requests was due to profit-taking.