Emerging Ethereum restaking protocol Karak has seen a significant increase in its total value locked (TVL), rising over 25% in the past week to over $440 million. Industry experts believe that Karak could start eating into EigenLayer’s market share, especially following the disappointment around the EigenLayer airdrop.

Anndy Lian, an intergovernmental blockchain expert and author, believes Karak has a “good chance” of becoming the next big restaking protocol. He pointed out that Karak supports a broader range of assets for restaking, including ETH, LST, LRT, stablecoins, LP tokens, and wrapped Bitcoin, which could attract a wider user base looking for more options beyond ETH.

EigenLayer's recent actions, including releasing a whitepaper for its upcoming EIGEN token that banned several jurisdictions from its airdrop, have caused widespread criticism. This could lead to a drop in TVL as stakers seek more inclusive and lucrative alternatives. Lian noted that farmers and stakers who were eagerly anticipating the EIGEN airdrop might now reallocate their assets to other DeFi projects.

Crypto analyst Ran Neuner has criticized EigenLayer, calling it a venture capitalist (VC) scam designed to attract liquidity from unsophisticated retail investors. He argued that early VCs get in at small valuations, while retail investors get in at much higher valuations. Neuner also raised concerns about the airdrop ban in key unbanked jurisdictions and the decision to keep airdropped EIGEN tokens locked until the team decides, suggesting that these actions primarily benefit early-stage VC investors.

Emerging Ethereum restaking protocol Karak has seen a significant increase in its total value locked (TVL), rising over 25% in the past week to over $440 million. Industry experts believe that Karak could start eating into EigenLayer’s market share, especially following the disappointment around the EigenLayer airdrop.

Anndy Lian, an intergovernmental blockchain expert and author, believes Karak has a “good chance” of becoming the next big restaking protocol. He pointed out that Karak supports a broader range of assets for restaking, including ETH, LST, LRT, stablecoins, LP tokens, and wrapped Bitcoin, which could attract a wider user base looking for more options beyond ETH.

EigenLayer's recent actions, including releasing a whitepaper for its upcoming EIGEN token that banned several jurisdictions from its airdrop, have caused widespread criticism. This could lead to a drop in TVL as stakers seek more inclusive and lucrative alternatives. Lian noted that farmers and stakers who were eagerly anticipating the EIGEN airdrop might now reallocate their assets to other DeFi projects.

Crypto analyst Ran Neuner has criticized EigenLayer, calling it a venture capitalist (VC) scam designed to attract liquidity from unsophisticated retail investors. He argued that early VCs get in at small valuations, while retail investors get in at much higher valuations. Neuner also raised concerns about the airdrop ban in key unbanked jurisdictions and the decision to keep airdropped EIGEN tokens locked until the team decides, suggesting that these actions primarily benefit early-stage VC investors.