Pioneering restaking project EigenLayer has raised a significant $100 million in a recent funding round led by a16z crypto before it even went live.
Prelaunch Interest Raises $100M
EigenLayer, an Ethereum-based crypto restaking project, has secured a substantial $100 million investment from A16z crypto, the crypto investing arm of venture capital firm Andreessen Horowitz.
The project is being developed by Eigen Labs, which confirmed the news of the fundraise via a post thread on the social media platform X.com.
“We are excited to announce that Eigen Labs, the core development team contributing to EigenLayer and EigenDA, has raised $100 million from a16z crypto.”
EigenLayer had previously completed a $50-million funding round in March, led by Blockchain Capital. The project, developed by Eigen Labs, has been gaining attention within the crypto community for its innovative approach to staking and security.
Despite not yet launching any actively validated services (AVSs), EigenLayer has been generating significant hype. The platform recently removed the cap on deposits, citing increasing interest from new users, and has seen its total value locked (TVL) soar to nearly $8 billion.
A Significant Investment
Ali Yahya, general partner at Andreessen Horowitz, highlighted the potential of this partnership and how it could open the door to new types of applications.
“It will enable all sorts of new kinds of applications to be built… People will stake capital in order to gain rewards from new services that get spun up on top of EigenLayer.”
The investment comes amidst a broader trend of increasing venture capital (VC) funding for crypto-related firms. According to a report from PitchBook, VC funding for crypto firms rose by 2.5% in the fourth quarter of 2023, reaching $1.9 billion. This uptick marks the first increase in VC crypto investments since March 2022 and reflects growing confidence in the crypto market.
The Restaking Process
EigenLayer's core technology revolves around the process of restaking, whereby ETH tokens are deposited as security to support additional networks and protocols. The project is pioneering this technology and has benefited from the emergence of new "liquid restaking" protocols built on top of its infrastructure.
Platforms like Ether.Fi and Puffer are examples of liquid restaking platforms that leverage EigenLayer's technology. Ether.Fi, the largest of these platforms with over $1.4 billion in TVL, launched last year, while Puffer, launched just three weeks ago, has already amassed $1 billion in deposits. These platforms incentivize restaking by offering reward points to users, further driving the adoption of EigenLayer's technology.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
