Blockchain
Could Ethereum Restaking Create a New Crypto Bond Market? Here’s what S&P says!
Ethereum Staking services are gaining traction, and S$P Global Ratings predicts they could lead to a robust “internet bond” market. This change promises new return opportunities for cryptocurrency investors.
Ethereum restaging: what it is
Ethereum holders can now earn additional yield by staking their coins to facilitate the verification of transactions on the blockchain. This process, known as staking, reinvests the staking rewards to provide compounding returns, much like securities lending in traditional bond markets. Platforms like Eigen Layer, recently launched on Coinbase, are driving this innovation.
Impact of Ethereum restaking
Andrew O’Neill, head of digital assets at A&P Global, highlighted the potential of retaking to spur economic growth in the cryptocurrency market. He noted that staking allows Ethereum node operators to validate new services using established tokens, avoiding the need for new, volatile tokens.
There are currently only a few active restaging services, known as “actively validated services”. The total value of ETH reconstituted in EigenLayer exceeded 5.3 million Ether, worth $19 million. Since its launch in April, EigenLayer has seen rapid adoption and recently opened Phase 2 applications for the EIGEN air launch. This popularity could inspire more players to introduce staking services, potentially transforming the cryptocurrency market.
In any case, the future of the remake depends on regulatory approval. The US Securities and Exchange Commission will play a crucial role in this.
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