EigenLayer, a staking protocol for Ethereum, witnessed inflows of around $157 million in staked ETH from Lido in the past 24 hours, marking the highest inflow on the platform since February. This surge in inflows occurred as Lido's share of the Ethereum staking market dropped below 30% due to outflows into other restaking protocols.

EigenLayer recently removed caps on all ETH liquid staking tokens (LST) and resumed restaking deposits on April 16. This move signifies a significant step for EigenLayer's ecosystem, aiming to promote an open market for innovation and provide users with unrestricted access to all LST pools. Previously, caps were implemented to enhance decentralization and mitigate the risk of dominance by any single token, but now, they have been lifted to foster a more open environment. However, a governance participation limit of 33% for any liquid-staked token has been put in place to maintain neutrality and decentralization.

Despite recent market volatility, EigenLayer remains the dominant protocol in the restaking sector, controlling 99% of the market. Currently, there are approximately 4 million ETH on the platform, valued at over $12.2 billion.

On the flip side, Lido experienced significant outflows totaling nearly 400,000 ETH in the past month, reducing its market share to 28.87%. During the same period, liquid restaking protocols Ether.fi and Renzo attracted over 700,000 ETH to their platforms. This decline in Lido's market share can be attributed to increased competition within the liquid staking landscape. Ethereum educator Anthony Sassano noted that increased competition is healthy for the staking ecosystem and contributes to decentralization.