Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnWeb3SquareMore
Trade
Spot
Buy and sell crypto with ease
Margin
Amplify your capital and maximize fund efficiency
Onchain
Going Onchain, without going Onchain!
Convert
Zero fees, no slippage
Explore
Launchhub
Gain the edge early and start winning
Copy
Copy elite trader with one click
Bots
Simple, fast, and reliable AI trading bot
Trade
USDT-M Futures
Futures settled in USDT
USDC-M Futures
Futures settled in USDC
Coin-M Futures
Futures settled in cryptocurrencies
Explore
Futures guide
A beginner-to-advanced journey in futures trading
Futures promotions
Generous rewards await
Overview
A variety of products to grow your assets
Simple Earn
Deposit and withdraw anytime to earn flexible returns with zero risk
On-chain Earn
Earn profits daily without risking principal
Structured Earn
Robust financial innovation to navigate market swings
VIP and Wealth Management
Premium services for smart wealth management
Loans
Flexible borrowing with high fund security
Validator withdrawals fuel $30 billion migration into Ethereum liquid restaking protocols

Validator withdrawals fuel $30 billion migration into Ethereum liquid restaking protocols

The BlockThe Block2025/08/27 16:00
By:By Brandon Kae and Ivan Wu

Quick Take The migration from native staking to liquid restaking reflects evolving risk appetite and yield optimization strategies among ETH holders. The following is excerpted from The Block’s Data and Insights newsletter.

Validator withdrawals fuel $30 billion migration into Ethereum liquid restaking protocols image 0

Ethereum liquid restaking protocols have experienced remarkable growth, with total value locked across platforms reaching $30 billion, representing a significant shift in how validators are deploying their ETH for yield generation. This surge comes as native ETH staking has seen increased withdrawal activity, with validators exiting the traditional staking mechanism in favor of more dynamic opportunities.

Leading protocols like EtherFi and Eigenpie have captured substantial market share since the beginning of the year, with the sector showing consistent upward momentum through mid-2025.

The migration from native staking to liquid restaking reflects evolving risk appetite and yield optimization strategies among ETH holders. While some market observers initially interpreted validator withdrawals as bearish sentiment, the data suggest users are simply reallocating capital toward more lucrative DeFi opportunities rather than exiting the ecosystem entirely.

Liquid restaking offers the dual benefit of maintaining exposure to ETH staking rewards while providing additional yield opportunities and maintaining liquidity through tradeable receipt tokens. The timing of this shift aligns with broader market conditions and the DeFi ecosystem, delivering promising yield. 

During periods of market turbulence, native ETH staking represented the safest yield-generating option for risk-averse holders seeking steady returns. However, as market conditions have stabilized and DeFi protocols have demonstrated greater resilience, participants get increasingly comfortable exploring higher-yield alternatives that liquid restaking protocols provide.

This trend suggests that as the Ethereum ecosystem continues to evolve, users are becoming more sophisticated in their yield farming strategies, moving beyond simple staking toward more complex but potentially rewarding DeFi positions.

This is an excerpt from  The Block's Data & Insights newsletter . Dig into the numbers making up the industry's most thought-provoking trends.


0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!

You may also like

Toncoin's Strategic Institutional Adoption and Its Impact on Long-Term Value

- Toncoin (TON) accelerates institutional adoption via TSC's $558M PIPE, staking 4.86% yields and leveraging Telegram's 1.8B-user ecosystem for tokenized revenue streams. - Robinhood listing boosts TON liquidity by 60% while U.S./EU regulatory shifts (SEC ETF approval, MiCA) lower barriers for institutional crypto participation. - Staking partnerships with Copper/Kiln expand TON's utility but face risks from 68% whale-controlled supply, contrasting with Ethereum/Solana's institutional inflows in Q3 2025. -

ainvest2025/08/30 02:45
Toncoin's Strategic Institutional Adoption and Its Impact on Long-Term Value

Blockchain’s Role in Democratizing Scientific Innovation: DMD Diamond and the Future of DeSci

- DMD Diamond Blockchain, a Layer 1 infrastructure, leverages blockchain to address systemic inefficiencies in scientific research via decentralized funding and open-access NFT-based publishing. - Its 20x higher throughput than Ethereum, instant finality, and low fees enable scalable scientific workflows, disrupting the $100B academic publishing industry. - With a $800M+ DeSci market target and FDV of BTC79.5309, DMD’s hybrid HBBFT consensus and 12-year blockchain history position it as a sustainable infra

ainvest2025/08/30 02:45
Blockchain’s Role in Democratizing Scientific Innovation: DMD Diamond and the Future of DeSci

XRP’s Strategic Integration with SWIFT: A Game-Changer for Cross-Border Payments

- SWIFT tests Ripple's XRP Ledger for cross-border payments, aiming to integrate blockchain with ISO 20022 standards by 2025. - XRP offers near-instant settlements (<4s), $0.0002 fees, and 1,500 TPS—far outpacing SWIFT's $26–$50 fees and 3–5 day delays. - Institutional adoption grows as XRP bridges forex liquidity gaps, with Ripple's RLUSD stablecoin enabling real-time fiat-crypto conversions. - Analysts estimate a 1% shift in SWIFT's $150T annual volume to XRP could generate $1.5B in transactional demand

ainvest2025/08/30 02:45
XRP’s Strategic Integration with SWIFT: A Game-Changer for Cross-Border Payments