Renzo’s ezETH Token Gains Market Share with 30% Increase in Total Supply

Renzo’s ezETH Token Adds $730 Million in Total Supply, Gaining Market Share in Competitive Sector

Renzo’s ezETH token has seen a significant increase in its total supply, adding $730 million in the last seven days. This surge has propelled the total ezETH supply on layer 2 blockchains to $680 million, surpassing its competitor Ether.fi’s eETH, which stands at $428 million.

The rise in ezETH’s supply comes as the battle for market share in the liquid restaking (LRT) sector intensifies. Restaking, a concept introduced by EigenLayer, allows users to deposit their staked Ether into the protocol and receive LRT tokens in return. These tokens can be used in various DeFi protocols.

According to data from DefiLlama, Renzo added $460 million in deposits on Ethereum’s mainnet and an additional $270 million on layer 2 networks in the last week. This brings the total supply of ezETH to $2.96 billion across all blockchains.

While Ether.fi’s eETH leads in total value deposited with $3.8 billion, only $428 million of that is on layer 2 networks. Layer 2 networks offer users lower transaction fees and opportunities to earn additional points, which incentivize protocol usage.

Renzo and Ether.fi have a significant presence on Arbitrum, the largest Ethereum layer 2 network. Renzo’s integration with Blast, a layer 2 protocol offering leverage farming opportunities, has attracted users looking to maximize their returns.

As the battle for market share heats up, EigenLayer recently launched its mainnet, further intensifying competition in the LRT sector. Additionally, Juice announced the integration of eETH into its vaults, while Gearbox will integrate ezETH on Arbitrum for leveraged point farming.

The daisy chain of points involving Renzo, EigenLayer, Hyperlock, Thruster, Juice, and Blast presents opportunities for users to earn rewards but also carries significant risks. Deposits routed through multiple protocols increase the risk of liquidation.

With the LRT sector evolving rapidly, users and investors will need to stay informed and vigilant to navigate the competitive landscape effectively.