EigenLayer Dominates Ethereum Staking Market, Concentrated Risks Loom Large
The Ethereum staking landscape has undergone significant changes in recent times. EigenLayer has overtaken Lido's dominance in the restaking market, controlling nearly $20 billion in total value locked (TVL) and accounting for 94% of the market share as of mid-2026.
This shift surpasses Lido's liquid staking dominance in 2026, with ether.fi capturing a significant portion of the staked ETH through its $7.83 billion liquid restaking pool, representing 28% of all staked ETH.
The concentrated risks associated with liquid restaking tokens create a single point of failure, where a flaw in a single smart contract or operator's mistake can spread throughout the DeFi layer.
Lido's stETH remains the largest liquid staking asset, but its growth has stagnated as users seek higher yields found in liquid restaking. Users holding stETH face a 10% fee on staking rewards, which Lido splits between node operators and its DAO treasury.