EigenLayer, the restaking protocol, has achieved a significant milestone, surpassing $20.09 billion in total value locked (TVL) for the first time in its history. This remarkable feat solidifies EigenLayer's position as the second-largest DeFi protocol, trailing only behind Lido in terms of TVL. According to data from The Block, EigenLayer's TVL has experienced exponential growth since the beginning of the year, skyrocketing from $1.4 billion to $20 billion, equivalent to 5.21 million ether.

At the start of March, EigenLayer's TVL stood at 2.93 million ether, valued at $10 billion. The recent surge in TVL can be attributed to increased inflows and a surge in the price of ether, highlighting the protocol's growing popularity and appeal among users.

EigenLayer operates as a restaking protocol, allowing users to deposit ether and various liquid staking tokens to contribute to securing third-party networks. The protocol's mainnet was launched in April, marking a significant step forward in its development and adoption within the DeFi ecosystem.

Following EigenLayer's token distribution plan, there was a notable uptick in deposits. However, the protocol encountered a brief period of outflows due to community backlash over low individual airdrop allocations and token non-transferability issues. To address these concerns, the Eigen Foundation expanded airdrop allocations for all users and clarified the token unlock timeline and transferability, leading to renewed confidence and increased inflows.

May 31 witnessed a significant spike in inflows, with over half a billion in deposits made on the platform, according to The Block's data on daily net flows. This surge in activity further underscores the growing interest and participation in EigenLayer's ecosystem.

The Eigen Foundation has allocated 15% of its 1.6 billion token supply for user distribution across multiple stakedrop seasons, with 5% already allocated as of a March 2024 snapshot. Currently, the protocol is in its second stakedrop season, signaling ongoing engagement and commitment to rewarding the community.

Utilizing a shared security model, EigenLayer empowers third-party applications, known as actively validated services, to join the platform and enhance their security by leveraging a collective pool of re-staked ether. This innovative approach enhances the overall security and resilience of the DeFi ecosystem while fostering collaboration and interoperability among different protocols.

EigenLayer's achievement of surpassing $20 billion in TVL signifies a significant milestone in the evolution of decentralized finance, highlighting the protocol's growing prominence and potential to reshape the future of financial infrastructure.