The total value locked (TVL) of emerging Ethereum restaking protocol Karak surged by over 25% in the past week, exceeding $440 million. Industry experts suggest that Karak could begin encroaching on EigenLayer’s market dominance.
Anndy Lian, intergovernmental blockchain expert and author of NFT: From Zero to Hero, believes Karak has a “good chance” of becoming the next major restaking protocol. Lian highlights Karak’s support for a broader range of assets for restaking, including ETH, LST, LRT, stablecoins, LP tokens, and wrapped Bitcoin, which could attract a wider user base seeking diverse staking options.
In April, Karak concluded a $48 million Series A funding round, resulting in a valuation exceeding $1 billion. This substantial funding places Karak in a favorable position for further growth compared to EigenLayer, which holds a $15.7 billion valuation, making it the largest restaking protocol on Ethereum.
EigenLayer‘s recent white paper release for its upcoming EIGEN token received criticism for excluding participants from several jurisdictions, including the United States, Canada, and various African and Asian countries. This decision has sparked discontent within the crypto community and presents a significant opportunity for Karak.
The exclusion of participants from key crypto jurisdictions in the EIGEN airdrop could result in a decrease in EigenLayer’s TVL. Stakers disappointed by the exclusion may seek alternative platforms or protocols. Lian suggests that some individuals might reallocate their assets to other DeFi projects offering more inclusive airdrop opportunities.
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