📈Why Restaking
EigenLayer is positioned as a significant opportunity in the staking ecosystem, particularly in the context of non-Ethereum proof-of-stake networks. The analysis starts by examining the growth of staking revenue in existing Layer 1 blockchains, projecting a CAGR of 37% and estimating a market size of over $25 billion by 2030.
EigenLayer is expected to capture 10% of staking rewards earned on the marketplace, suggesting an addressable market size of $300 million in token revenue in 2022. With future growth potential, the addressable market for EigenLayer could reach $2.5 billion as non-ETH AVS staking revenue exceeds $25 billion in the next decade.
EigenLayer's potential valuation is compared to Lido Finance, a notable player in the liquid staking derivatives market. Assuming a 25x multiple of annualized revenue, EigenLayer would need to generate $200 million in annualized revenue to reach a $5 billion FDV (Fully Diluted Valuation).
However, different from Lido Finance, EigenLayer didn't implement the liquid wrapper feature. This reduces the attraction of the restaking service for the users because it loses the more yield potential from the DeFi composability.
Moreover, all the staking services mainly focus on Ethereum Mainnet and return all the benefits, yield to the Mainnet. L2s also have lots of potential to participate into the restaking.
In summary, EigenLayer is positioned as a promising protocol, leveraging the growth in staking revenue, capturing a portion of the market, and potentially reaching a significant valuation in the staking ecosystem. It also has some disadvantages that Euclid Finance will improve. This will be the last piece of the restaking service.