**Ethereum’s Role as a Monetary Asset Under Scrutiny with Rise of Restaking Protocols**
*Emergence of EigenLayer and LRT Staking Protocols Boosts ETH’s Share to 26%*
In a recent analysis by Glassnode, the impact of the latest trend towards restaking protocols on Ethereum’s role as a monetary asset has come under scrutiny. The study revealed that the emergence of the EigenLayer and LRT staking protocols has significantly increased ETH’s share of staking to 26% of the total supply. Analysts also noted a surge in the overall growth in coins staked, reaching 31.4 million Ethereum (ETH) as of April 13.
*Potential Inflation Concerns Loom as More ETH Gets Staked*
While the increase in staked ETH reduces non-validator rewards, Glassnode warns that the total amount of rewards paid could still contribute to inflation if a substantial number of assets remain locked. Following The Merge, the share of new coins in the total Ethereum supply hit 1.01%, with approximately 3.55% of ETH withdrawn from circulation during this period.
*Remuneration Levels Drop as Staking Needs Evolve*
As the staking landscape evolves with innovations like MEV, liquid staking, restaking, and liquid restaking, the remuneration level for ensuring network security per validator has dropped to 3.2% per annum. Experts highlight that the increasing staking needs beyond the original intent could impact the ecosystem.
*Wealth Transfer and Potential Impact on ETH Ownership*
With more ETH being staked, the effects of inflation are felt by fewer holders, leading to a transfer of wealth to participants generating additional income from network security maintenance. Experts caution that over time, the real yield component could make ETH ownership less attractive, potentially negating its function as a monetary asset in the Ethereum ecosystem.
*Restaking Sector Sees Rapid Growth*
Restaking allows users to stake their assets multiple times on the main blockchain and additional protocols. The sector has seen significant growth since the beginning of the year, with the total value locked in restaking protocols surpassing $8 billion in early April. Leading the pack is the ether.fi project with $3.2 billion in TVL.
As Ethereum’s staking landscape continues to evolve, the implications for its role as a monetary asset remain a topic of interest for analysts and investors alike.
