CoinDesk Reports:
Symbiotic, an emerging Ethereum restart protocol, is aiming to challenge EigenLayer’s dominant position. Following an increase in deposit limits, Symbiotic’s TVL doubled to over $1 billion in less than 24 hours.
On July 3, Symbiotic raised its deposit cap from approximately 92,000 ETH, encouraging users to inject 232,028 ETH worth over $700,000 into its Liquidity Staked Token (LST) protocol.
According to Symbiotic on social media, its updated limit of 210,600 Lido Staked Ether (wstETH) was filled within four hours. The Ethena Staked USDe (sUSDe) pool also hit 50 million tokens.
“Symbiotic reached its 210,600 wstETH limit four hours later,” the project stated. “Other assets can still be staked, with limits increasing over time. Additional assets will be added as the protocol expands.”
Users can still deposit LST worth 50,435 ETH ($158 million) across seven different pools, along with up to $22 million worth of Ethena (ENA) tokens.
Symbiotic Gains Market Share
In less than a month since its launch, these activities have pushed Symbiotic’s total locked value (TVL) to over $1 billion. This surge in TVL makes Symbiotic the second-largest dining protocol, surpassing Karak’s $822.7 million TVL.
EigenLayer continues to dominate the industry with assets worth approximately $16.2 billion. However, DeFi Llama reports that EigenLayer has seen a reduction in deposits by 530,000 ETH ($1.6 billion) since Symbiotic set a record high of 5.42 million ETH shortly after its launch on June 17.
Symbiotic could prove an attractive choice for yield farmers seeking new planting grounds. In April, EigenLayer’s highly anticipated initial airdrop distribution fell short of user expectations.
Symbiotic has also attracted integration from prominent liquidity dining token (LRT) providers. On July 3, leading LRT provider EtherFi launched the Symbiotic Points Yield Insurance Pool. A week earlier, Renzo introduced a Symbiotic-based light rail.
Related: Mellow Finance aids Lido in maintaining its status as the largest DeFi protocol.
