Kraken's New Integration to Boost Ethereum Restaking

By: Eva Baxter

In a significant move to democratize restaking in the cryptocurrency sector, crypto exchange Kraken has announced the launch of a new feature that enables users to restake Ethereum (ETH) directly through the platform. This initiative comes as a partnership with EigenLayer, a key Ethereum-based protocol, as stated in a press release dated October 15.

Marking its commitment to advancing decentralized finance, Kraken's new service is currently available to verified Kraken Pro users at or above the Intermediate level. However, owing to regulatory constraints, this feature is not extended to residents of the United States. Mark Greenberg, Kraken’s Global Head of Asset Growth & Management, pointed out that until now, restaking has largely been an arena for the technologically proficient within the crypto community. With majority of transactions being channeled through centralized exchanges, there arises an opportunity to widen the adoption and simplify the process for general users.

Restaking in essence empowers validators and stakers to secure decentralized applications (dApps) on the Ethereum network with assets that have already been staked. Through the operations of EigenLayer, users can repurpose their staked ETH to add security to additional networks or protocols. This process potentially increases the yields for users. Moreover, Kraken's subsidiary, Staked, takes an active role as the validator for ETH restaked, having established a strong stance within EigenLayer by typically accommodating institutional clientele.

This development occurs against the backdrop of a dwindling total value locked (TVL) within EigenLayer. The protocol has seen its TVL decline to $11.45 billion from a noteworthy high of over $20 billion recorded in June, as reported by DeFiLlama. Various factors, such as the cessation of its airdrop campaigns which had previously spurred community engagement, are cited for the reduction. Nonetheless, the expectation is that with increased accessibility facilitated by centralized exchanges like Kraken, a revitalization of interest and participation could reverse this declining trend, thereby enhancing EigenLayer's TVL.