Cryptocurrency exchange Kraken announced its successful integration with EigenLayer, allowing its users to stake ethereum (eth) again directly from the platform, according to an October 15 press release.
The partnership aims to simplify recovery, making it more accessible to a wider range of users. Currently, access to the service is limited to verified Kraken Pro users at the intermediate level or above. Additionally, US residents are not eligible to participate for regulatory reasons.
Recovering accessibility
Mark Greenberg, Global Head of Asset Management and Growth at Kraken, ethereum-Restaking-to-Bring-the-Cutting-Edge-of-Onchain-Finance-to-the-Masses”>noted That rally has been one of the biggest developments in the crypto space this year. However, it has mainly been used by more tech-savvy crypto users.
Greenberg added that since the majority of cryptocurrency users interact with centralized exchanges (CEX), this integration aims to bring recovery to a broader audience, making it easier for everyday users to participate.
Staking allows validators and stakers to secure decentralized applications (dApps) on ethereum using assets they have already staked.
EigenLayer, an ethereum-based protocol, has been instrumental in this process, allowing users to repurpose staked eth to secure additional networks or protocols while also offering opportunities for higher returns.
This new integration would allow Kraken users to re-stake any eth they have already staked on the platform and earn additional rewards.
Kraken subsidiary Staked acts as a validator of renewed eth through the exchange. Staked is a featured trader on EigenLayer and typically serves institutional clients.
Eigenlayer TVL Trends
This development comes as EigenLayer has seen a decrease in total value locked (TVL) in recent months. According to DeFiLlama, EigenLayer's TVL has fallen to $11.45 billion from an all-time high of over $20 billion recorded in June.
Market observers attribute this decline to several factors, including the protocol's completion of its airdrop campaigns that sparked significant community interest.
However, they believe that greater accessibility through centralized exchanges like Kraken could reverse this trend, driving greater participation and boosting EigenLayer's TVL in the future.
