The collective value locked within liquid restaking tokens has surged to nearly $8 billion, marking a significant growth in recent times. Noteworthy protocols like Etherfi, Renzo, Kelp, Puffer, among others, have witnessed a considerable influx of deposits within the past few months. This surge is primarily attributed to users embracing EigenLayer through these platforms, enabling them to maintain control over their funds securely.

Among these liquid restaking tokens (LRTs), Etherfi leads the pack with a total value locked surpassing $3.2 billion, closely followed by Renzo with $2 billion and Puffer with $1.3 billion deposits. Kelp boasts a substantial user deposit pool crossing $740 million, while EigenPie and Swell hold TVLs at $328 million and $265 million, respectively. On the other end of the spectrum, smaller LRT protocols like Bedrock amass a TVL of $145 million, Prime at $42 million, and ClayStack at $10 million.

The concept of liquid restaking facilitates token holders to stake their assets on EigenLayer, thereby bolstering its economic security. This method stands in contrast to traditional liquid staking practices that involve staking assets through a third-party service provider and receiving corresponding receipt tokens. EigenLayer's direct influence in the TVL surge across these protocols is evident, as it permits users to deposit and "re-stake" ether from various liquid staking tokens.

EigenLayer’s notable contribution to the total value locked now surpasses $13 billion, as reported by The Block's data dashboard. The overarching objective of this project is to employ these funds in fortifying the security of other networks such as rollups, oracles, data availability platforms, and related services. Earlier in February, there was a temporary window for restaking deposits with liquid staking tokens on EigenLayer which is now closed. In light of this, LRTs emerge as a viable alternative, facilitating users to deposit funds on Eigen when nearing their limits, as direct restaking on EigenLayer via ether validator stakes has no imposed caps.

Consequently, LRT protocols such as EtherFi, Renzo, and Kelp continue to accept ether deposits from users, restaking these assets and issuing derivative tokens, alongside the commitment to distribute any points accrued from Eigen. By rewarding users with points for their ether deposits, EigenLayer enhances their prospects of receiving a token from EigenLayer. Currently, a substantial number of users are leveraging LRTs to make deposits on Eigen, seeking rewards from both the LRTs and potential dual airdrops.

Furthermore, these protocols offer additional incentives by granting two categories of points – one from Eigen and the other from the respective protocol. For instance, when a user restakes a liquid staking token like stETH using Kelp, they acquire points from both EigenLayer and KelpDAO, amplifying their chances of reaping rewards from each entity. This dual benefit system adds a layer of complexity and intrigue to the realm of liquid restaking within the cryptocurrency landscape.