Ethereum’s staking landscape is undergoing a major transition: total value locked in liquid restaking protocols has surged to $30 billion, signaling a broad shift in validator behavior.
Instead of a mass exodus from staking, as some early interpretations suggested, the data points to ETH holders reallocating capital from native staking into higher-yield DeFi strategies. Platforms like EtherFi and Eigenpie have been standout winners, steadily growing market share through 2025.
Liquid restaking’s appeal lies in its dual advantage: users still earn base ETH staking rewards, while also unlocking additional yield through DeFi integrations — all while maintaining liquidity via tradable receipt tokens. This provides flexibility that traditional staking cannot match.
The timing of this migration is important. In 2022–23, native staking was considered the safe haven: a predictable yield source during volatile market conditions. But with DeFi protocols showing greater resilience and on-chain markets stabilizing, participants are increasingly comfortable moving into restaking strategies that offer more upside.
This evolution highlights a maturing user base. ETH holders are no longer just parking assets for baseline yield; they are treating staked ETH as working capital, deploying it into layered positions that blend security with yield optimization.
If the current growth trajectory continues, liquid restaking may become Ethereum’s dominant staking model — reshaping validator economics and liquidity flows across DeFi.
