Ethereum Could Face 'Hidden Risks' From Ballooning Restaking Market: Coinbase

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Will Canny is CoinDesk's finance reporter.

Restaking and liquid restaking tokens could pose additional risks compared to existing staking products.

“EigenLayer’s staking protocol is poised to become the bedrock for a wide range of new services and middleware on Ethereum, which, in turn, could generate a meaningful source of etherrewards for validators in the future,” analysts David Han and David Duong wrote, noting that it is now the second largestallows validators to earn extra rewards by securing actively validated services by restaking their staked ether and “builds upon the foundation of the existing staking ecosystem by...

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