🚀Weekly Recap: EigenLayer Realizes Restaking Vision With Mainnet Rollout

Happy weekend Defiers!

EigenLayer’s mainnet launch dominated headlines this week, with the pioneering restaking protocol onboarding Actively Validated Services (AVSs) for the first time. The launch allows Ethereum stakers to earn additional yields on top of staking rewards by securing third-party AVSs in exchange for taking on additional slashing risks.

EigenLayer’s mainnet deployment proved an immediate success, with AVSs attracting $500 million worth of delegated stake within 24 hours. EigenLayer already ranked as the second largest DeFi protocol prior to its mainnet launch amid booming growth in the liquid restaking ecosystem.

Other protocols are trying to cash in on the restaking boom set in motion by EigenLayer, with Karak announcing the completion of a $48 million Series A funding round backing its plans for a “universal restaking layer.” However, Karak is facing backlash after being outed as the second reincarnation of Risk Habor, a project accused of making off with $7 million meant to underwrite Terra’s failed UST stablecoin.

The other major piece of news this week was that the SEC sent a Wells Notice to Uniswap Labs, meaning the U.S. securities watchdog plans to bring a lawsuit against the company behind the top decentralized exchange, Uniswap. Uniswap Labs said it is “ready to fight” any alleged securities violations brought against it. The outcome of the case stands to become a watershed moment for crypto and DeFi.

Markets continued on a bearish trajectory this week, with leading assets quickly giving up short-lived gains amid higher-than-expected U.S. inflation data.

It was a big week for the Bitcoin ecosystem, with reports claiming that ETFs investing in Bitcoin could garner regulatory approval in Hong Kong as soon as next week.

Ordinals have been enjoying a resurgence, with Runestones flipping Bored Ape Yacht Club to emerge as the second-largest collection of non-fungibles by market cap just one month after its airdrop. Looking ahead, Runestones plans to follow up on its success by dropping memecoins to holders.

However, on-chain research revealed that 47% of newly minted Bitcoin are going to a single crypto custodian, Cobo, servicing nine of the largest mining pools. The data has once again called Bitcoin’s decentralization into question as a result of its industrial mining ecosystem.

Analysts remain bearish on the prospects of a spot Ether ETF receiving regulatory approval next month, despite the SEC hosting meetings with Ethereum exchange-traded fund applicants.