EigenLayer Mainnet Launch: Staking Re-Game and Structural Turning Point of $AAVE Protocol Fees
With the official launch of the EigenLayer mainnet, the re-staking arena has entered a true liquidity allocation phase. Currently, the total locked value (TVL) of the LRT protocol is around $12 billion, with ether.fi accounting for over 35%. However, a recent on-chain signal has emerged that traders should watch closely: the top ten whale addresses have redeemed approximately 42,000 ETH from ether.fi in the past 48 hours, with about 18,000 ETH directly deposited into EigenLayer's native contracts. This indicates that large funds are withdrawing from the LRT protocol to actively participate in EigenLayer's AVS validation for higher active validation service yields. My take is that this wave of redemptions isn't a panic sell-off but rather a turning point where the re-staking market shifts from 'passively earning LRT tokens' to 'actively participating in AVS governance.' For traders, it's crucial to monitor the changes in locked amounts of LRT tokens like $ETHFI . If ether.fi's TVL drops below $3 billion in the next week, it could trigger further selling pressure on LRT tokens. On the flip side, if the utilization rate of EigenLayer's native ETH deposit contracts exceeds 85%, it would boost re-staking yields, attracting more BTC and stablecoins through cross-chain bridges, leading to structural impacts on the liquidity landscape of $ETH . Currently, ETH is oscillating around $1667, with re-staking yields rebounding from 3.2% to 3.8%. If this continues, it could serve as a support factor for ETH prices. However, in the short term, the market remains in an extreme pessimism with a fear index of 13, and the re-staking narrative has yet to convert into substantial buying pressure.
Another aspect worth digging into is the latest updates on the AAVE protocol. AAVE's monthly net interest income on the Ethereum mainnet has exceeded $5 million for three consecutive months, while the total deposit volume has decreased from $33 billion to $28 billion, creating a classic divergence of 'growing income but shrinking scale.' I believe this reflects the advantages of the AAVE V3 version in efficient capital utilization: although total deposits are down, the interest spread on active lending pairs (like wstETH/ETH, USDC/USDT) is widening, fueling contrary growth in protocol fee income. On-chain data shows that approximately 62% of AAVE's protocol fee income comes from the Ethereum mainnet, 28% from Arbitrum, and the share on the Base chain has jumped from 3% to 8% in two weeks, mainly driven by the surge in borrowing demand for USDC due to active Meme coin trading. For traders, AAVE's current price is around $85, with an annualized protocol fee income of about $60 million, corresponding to a price-to-earnings ratio of around 15, which is relatively low among DeFi protocols. A key signal to watch is whether AAVE's governance proposal will initiate a fee shift towards buybacks or dividends in the next month—if approved, it could lead to a revaluation of the token price. Additionally, keep an eye on the growth rate of AAVE deposits on the Base chain; if the weekly growth rate exceeds 10%, it will validate the logic of Base becoming AAVE's second growth engine. Currently, AAVE's liquidation threshold is around $80; if BTC continues to drop, it could trigger liquidation pressure, but the protocol's high fee income provides a valuation safety net.
Interactive Question: Do you think the next catalyst for the re-staking arena will be the explosion of the AVS ecosystem, or a liquidity crisis of LRT tokens? Feel free to share your thoughts in the comments.
With the official launch of the EigenLayer mainnet, the re-staking arena has entered a true liquidity allocation phase. Currently, the total locked value (TVL) of the LRT protocol is around $12 billion, with ether.fi accounting for over 35%. However, a recent on-chain signal has emerged that traders should watch closely: the top ten whale addresses have redeemed approximately 42,000 ETH from ether.fi in the past 48 hours, with about 18,000 ETH directly deposited into EigenLayer's native contracts. This indicates that large funds are withdrawing from the LRT protocol to actively participate in EigenLayer's AVS validation for higher active validation service yields. My take is that this wave of redemptions isn't a panic sell-off but rather a turning point where the re-staking market shifts from 'passively earning LRT tokens' to 'actively participating in AVS governance.' For traders, it's crucial to monitor the changes in locked amounts of LRT tokens like $ETHFI . If ether.fi's TVL drops below $3 billion in the next week, it could trigger further selling pressure on LRT tokens. On the flip side, if the utilization rate of EigenLayer's native ETH deposit contracts exceeds 85%, it would boost re-staking yields, attracting more BTC and stablecoins through cross-chain bridges, leading to structural impacts on the liquidity landscape of $ETH . Currently, ETH is oscillating around $1667, with re-staking yields rebounding from 3.2% to 3.8%. If this continues, it could serve as a support factor for ETH prices. However, in the short term, the market remains in an extreme pessimism with a fear index of 13, and the re-staking narrative has yet to convert into substantial buying pressure.
Another aspect worth digging into is the latest updates on the AAVE protocol. AAVE's monthly net interest income on the Ethereum mainnet has exceeded $5 million for three consecutive months, while the total deposit volume has decreased from $33 billion to $28 billion, creating a classic divergence of 'growing income but shrinking scale.' I believe this reflects the advantages of the AAVE V3 version in efficient capital utilization: although total deposits are down, the interest spread on active lending pairs (like wstETH/ETH, USDC/USDT) is widening, fueling contrary growth in protocol fee income. On-chain data shows that approximately 62% of AAVE's protocol fee income comes from the Ethereum mainnet, 28% from Arbitrum, and the share on the Base chain has jumped from 3% to 8% in two weeks, mainly driven by the surge in borrowing demand for USDC due to active Meme coin trading. For traders, AAVE's current price is around $85, with an annualized protocol fee income of about $60 million, corresponding to a price-to-earnings ratio of around 15, which is relatively low among DeFi protocols. A key signal to watch is whether AAVE's governance proposal will initiate a fee shift towards buybacks or dividends in the next month—if approved, it could lead to a revaluation of the token price. Additionally, keep an eye on the growth rate of AAVE deposits on the Base chain; if the weekly growth rate exceeds 10%, it will validate the logic of Base becoming AAVE's second growth engine. Currently, AAVE's liquidation threshold is around $80; if BTC continues to drop, it could trigger liquidation pressure, but the protocol's high fee income provides a valuation safety net.
Interactive Question: Do you think the next catalyst for the re-staking arena will be the explosion of the AVS ecosystem, or a liquidity crisis of LRT tokens? Feel free to share your thoughts in the comments.