• July 16, 2024

Could Ethereum Restaking Create a New Crypto Bond Market? Here’s What S&P Says!

Ethereum staking services are gaining traction, with S$P Global Ratings predicting they could lead to a robust ‘internet bond’ market. This shift promises new yield opportunities for crypto investors.

Ethereum Restaking: What’s It

Ethereum holders can now earn additional yield by staking their coins to aid in transaction verification on the blockchain. This process, known as staking, reinvests staking rewards to provide compounding returns, much like lending securities in traditional bond markets. Platforms like Eigen Layer, which recently launched on Coinbase, are leading this innovation.

Impact of Ethereum Restaking 

Andrew O’Neill, the lead of A&P Global’s digital assets, highlighted retaking’s potential to boost economic growth in the crypto market. He noted that staking allows Ethereum node operators to validate new services using established tokens, avoiding the need for new, volatile tokens.

As of now, only a few active restaking services, known as ‘actively validated services,’ exist. The total value of ETH restaked in EigenLayer has surpassed 5.3 million Ether, valued at $19 million. Since its launch in April, EigenLayer has seen rapid adoption and recently opened Phase 2 claims for the EIGEN airdrop. This popularity could inspire more players to introduce staking services, potentially transforming the crypto market.

Anyway, the future of restaking hinges on regulatory approval. The US Securities and Exchange Commission will play a crucial role in this. 

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