Market Dynamics:
Leverage builds in bullish cycles, panic unwinds in bearish ones.
Authored by David
As Bitcoin ETF approvals loomed, crypto markets witnessed a flash crash this week—only for Ethereum ecosystem tokens like LDO and ARB to rebound sharply afterward. Smaller L2s (e.g., Metis) even surged beyond pre-crash levels, underscoring capital rotation into Ethereum-centric narratives.
But with L2s already pumped and liquid staking offering mostly beta returns, where else can investors focus? Enter restaking and EigenLayer—a catalyst both monumental and underutilized.
Understanding Restaking and LRTs
Restaking isn’t new. Since June 2023, EigenLayer has enabled users to "re-stake" ETH or Liquid Staking Tokens (LSTs) to secure additional decentralized services while earning extra rewards. For investors:
- Pstaking = yield; restaking = amplified yield.
The Liquidity Layering Game
- Stake ETH → Receive LST (e.g., stETH via Lido).
- Restake LST → Earn EigenLayer rewards.
- Problem: Locked liquidity = lost opportunities.
Solution: Liquidity Restaking Tokens (LRTs). Think of LRTs as collateral proofs that unlock liquidity while maintaining exposure to restaking rewards—a financial nesting doll:
- ETH → LST → LRT → DeFi strategies.
Top Projects to Watch
Low-Cap Tokens
SSV Network ($SSV)
- Market Cap: ~$330M
- Catalyst: Distributed validator tech for EigenLayer restaking (launched Jan 2024).
- Potential: Professional-grade restaking infrastructure.
Restake Finance ($RSTK)
- Market Cap: ~$38M
- What it does: Mints rstETH (LRT) for EigenLayer restakers.
- Recent Performance: 20x since Dec 2023.
- Key Feature: 5% revenue share for RSTK stakers.
Stader Labs ($SD) + KelpDAO
- Market Cap: ~$35M
- Synergy: KelpDAO’s rsETH (LRT) integrates with EigenLayer.
- Angle: Future airdrop potential via KelpDAO.
Prisma Finance ($PRISMA)
- Market Cap: ~$17M
- Niche: LSDFi (non-EigenLayer) leveraging LSTs for mkUSD stablecoins.
- Risk: High volatility; Sun Token holdings (~33% TVL).
Picasso Network ($PICA)
- Market Cap: ~$100M
- Edge: Solana-focused restaking via IBC bridges.
- Opportunity: Untapped SOL staking liquidity (~8% unstaked).
Pre-Token Projects
| Project | Key Focus | TVL |
|------------------|-----------------------------|------------|
| Puffer Finance | Lowering node thresholds (2 ETH) | N/A |
| Swell | rswETH + EigenLayer points | Growing |
| ether.fi | Non-custodial restaking | $120M |
Key Takeaways
- LRTs = Liquidity leverage tools, amplifying yield opportunities but compounding risks.
- Focus areas: Low-cap tokens ($RSTK, $SD) and Solana integrations ($PICA).
- Pre-token plays: Swell, Puffer, ether.fi (points farming).
FAQs
Q: Is restaking safer than LSTs?
A: No—it adds smart contract risk. Audit projects carefully.
Q: When will EigenLayer launch a token?
A: Unconfirmed, but accumulating points may qualify users for airdrops.
Q: Can I restake on Solana?
A: Yes, via Picasso Network’s IBC bridge.
Q: What’s the biggest risk with LRTs?
A: Protocol dependency; failure in one layer (e.g., LST issuer) cascades.
👉 Explore Ethereum Restaking Strategies
Liquidity never sleeps—neither should your due diligence.
### **SEO-Optimized Notes**
1. **Keywords:** Restaking, LRT, EigenLayer, Liquid Staking, $RSTK, $SSV, $SD, Solana restaking.
2. **Structure:** Hierarchical headings, bullet points, and tables enhance readability.