Author: MIIX Capital Source: X, @MIIXCapital_CN

Introduction

Recently, after the adoption of the Bitcoin spot ETF, the market adjustment mechanism was triggered, and the market experienced a periodic decline, but the pledge of ETH However, the volume is constantly increasing, and the demand for Restaking (re-pledge) is also increasing day by day. It is obvious that this is people's expectation that ETH will lead a new round of market conditions.

Under this expectation, Restaking has begun to rise in popularity and has attracted more and more people's attention. Especially after ALT was listed on Binance, the 24H increase Nearly 58 times, and the airdrop anchored by ALT (AltLayer ) is targeted at users participating in Restaking, which fully demonstrates the expected potential of the Restaking business.

ETH ShowTime, narrative and expectations complement each other

If we talk about the recent rising market, it is It is a special event for BTC, so the next step is the ETH Showtime. After all, the approval of the BTC spot ETF and the performance of the expected market have already set a sufficient example for ETH to take over, and in comparison, ETH seems to have met all the necessary conditions for activating the expected market. ：

• BTC is about to be halved, and ETH is about to undergo a Cancun upgrade;

• BTC spot ETF has been approved, and ETH spot ETF will face approval;

• BTC is the strongest consensus in the encryption market, and ETH is the strongest application domain in the encryption industry;

• BTC is the highest value carrier in the crypto market, and ETH is the dynamic ecology with the strongest narrative in the industry;

Narrative and expectations must complement each other. The above The only thing missing is that amid the market expectations of BTC, Inscription has taken advantage of the situation to officially open the BTC ecosystem, and at the same time added richer narrative possibilities to the industry. However, in the existing ecology of ETH, there has not yet appeared something like Inscription. This can provide additional bonuses for new market expectations and even lead the focus of the market.

The next main theme of the ETH ecosystem is the Layer 2 sector that is directly beneficial to the Cancun upgrade, and the Restaking ecosystem led by EigenLayer. But if it is strongly related to ETH, it must still be Restaking, especially the financial attributes of Restaking. It can not only undertake and expand LSD’s existing business framework, but also further activate market funds, making market expectations closer to us. . Therefore, Restaking is most likely to become a key focus of the narrative during ETH’s ShowTime.

EigenLayer ignited the Restaking trend

EigenLayer has been very popular recently , in just over a month, EigenLayer absorbed more than 700,000 ETH, and its TVL reached 515.92K ETH (equivalent to about 1.8 billion US dollars), becoming the 12th top protocol on the Ethereum chain. As EigenLayer increased the LST mortgage amount, ETH staking became the focus of the market, and the Restaking trend was completely ignited.

Let’s take a look at the recent EigenLayer related developments:

• On January 11, EigenLayer announced that it would bring talent to Cosmos and provide re-pledge services for the Cosmos sub-chain, thereby obtaining the security of Ethereum;

• < p style="text-align: left;">On January 21, the Ethereum re-pledge agreement EigenLayer TVL (locked amount) exceeded US$1.8 billion (DefiLlama data);

• < p style="text-align: left;">On January 23, EigenLayer plans to provide a "shared security" mode for DApps, allowing protocols to join the network by utilizing a public ETH pledge pool;

• On January 24, AltLayer announced the airdrop rules for EigenLayer participants: ETH direct staking users, LST re-staking users, and LRT staking users;

• On January 25, EigenLayer announced the introduction of sfrxETH, mETH and LsETH into the ecosystem, and the cancellation of LST’s personal upper limit of 200,000 ETH;

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• On January 26, Polyhedra Network cooperated with the Ethereum re-pledge protocol EigenLayer to build a cross-chain protocol from Ethereum to the Bitcoin network;

Since the beginning of the month, EigenLayer related news has been coming one after another, whether it is for marketing hype or to support and build the Restaking business. Everyone is beginning to focus on EigenLayer. In fact, these are laying the foundation for Restaking’s subsequent efforts, making it easier for Restaking to leverage the entire industry ecology and user market.

The rise of Restaking is both demand and necessity

Essentially, Restaking is a common practice in traditional finance. This is applied in the encryption market. Restaking based on ETH2.0 will make ETH2.0 more financial. This can be seen as another recognition of the financial attributes of ETH, but this recognition is also strongly related to market demand.

First of all, in the encryption market, financial attributes and financial characteristics are a key element in attracting incremental users and incremental funds, and are also responsible for promoting market and industry activity. It is an effective tool. When people have expectations that ETH will lead a new round of market conditions and continue to strengthen this expectation, financial strategies will be given priority. This is the role of market demand.

Secondly, in the field of LSD, related businesses based on ETH2.0 are too simple and thin compared with traditional finance, whether in terms of risk resistance or risk tolerance. The support of market demand is not enough, especially the narrative ability expected for ETH. At the same time, as the LSD business is essentially financial, taking this opportunity to complete the expansion of business peripherals and the establishment of structured finance has become inevitable.

So, in the context of people’s continuous expectations for the ETH market, the rise of Restaking is not only a market demand, but also an inevitable development. In the final analysis, it is driven by expectations. Improvement of self-narrative ability.

Starting from Restaking, the ETH market will be positive

Just like Inscription, it will take advantage of the BTC market to make a difference. The industry expands and opens a new branch of the story line, and Restaking will also become a key role in this Showtime. With continuous action, Restaking has become a very cost-effective investment option. As long as you participate in Staking, you can eat two or three of the same fish. Just looking at the directions that have begun to exert efforts, AltLayer, which is a Layer 2 hotspot, has been bundled and interacted with EigenLayer. EigenLayer's cancellation of the personal upper limit of LST also provides greater operating space for the market and users. It seems that it has begun to dominate the new market for ETH. A cycle is laid.

Combined with the market’s expectations for the ETH market, in the evolution of expectations and narratives, the Restaking trend set off by EigenLayer is inevitable, and Restaking is indeed as popular as people As expected, a new market cycle is being activated, ETH's Showtime is being activated, which is good for the ETH cycle.