Crypto exchange Kraken announced its successful integration with EigenLayer, enabling its users to restake Ethereum (ETH) directly from the platform, according to an Oct. 15 press release.
The partnership aims to simplify restaking, making it more accessible to a broader range of users. Access to the service is currently limited to verified Kraken Pro users at the Intermediate level or above. Additionally, US residents are not permitted to participate due to regulatory reasons.
Restaking accessibility
Mark Greenberg, Kraken's Global Head of Asset Growth & Management, noted that restaking has been one of the most significant developments in the crypto space this year. However, it has primarily been utilized by more tech-savvy crypto users.
Greenberg added that since the majority of crypto users engage with centralized exchanges (CEXs), this integration aims to bring restaking to a wider audience, making it easier for everyday users to participate.
Restaking allows validators and stakers to secure decentralized applications (dApps) on Ethereum using assets they have already staked.
EigenLayer, a protocol built on Ethereum, has been pivotal in this process as it enables users to repurpose staked ETH to secure additional networks or protocols while offering opportunities for higher yields.
This new integration would allow Kraken users to restake any ETH they've already staked on the platform and earn additional rewards.
Kraken's subsidiary, Staked, serves as the validator for ETH restaked through the exchange. Staked is a prominent operator on EigenLayer and typically provides services to institutional clients.
EigenLayer TVL trends
This development comes as EigenLayer has seen a decline in total value locked (TVL) in recent months. According to DeFiLlama, EigenLayer's TVL has dropped 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 conclusion of its airdrop campaigns that ignited significant community interest.
However, they believe the increased accessibility through centralized exchanges like Kraken could potentially reverse this trend, driving more participation and boosting EigenLayer's TVL in the future.