Fun

Karak has ‘good chance’ of becoming next EigenLayer after EIGEN airdrop disappointment

News Feed - 2024-04-30 07:04:40

Zoltan Vardai13 hours agoKarak has ‘good chance’ of becoming next EigenLayer after EIGEN airdrop disappointmentEigenLayer’s decision to ban U.S.- and Canada-based airdrop participants could lead to a mass exodus to other restaking protocols. So, will Karak become the next EigenLayer?2048 Total views1 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksEmerging Ethereum restaking protocol Karak’s total value locked (TVL) rose over 25% in the past week to over $440 million, and industry experts believe it could start eating into EigenLayer’s market share.


Following the disappointment around the EigenLayer airdrop, Karak has a “good chance” of become the next big restaking protocol, according to Anndy Lian, intergovernmental blockchain expert and author of NFT: From Zero to Hero.He told Cointelegraph:“Karak supports a broader range of assets for restaking, including Ether, liquid staking tokens, liquid restaking tokens, stablecoins, liquidity provider tokens and Wrapped Bitcoin. This diversity could attract a wider user base looking for more options beyond ETH.”


At the beginning of April, Karak closed a $48-million Series A funding round, giving it a valuation of over $1 billion, which means more upside potential. By comparison, EigenLayer has a $15.7-billion valuation, making it the largest restaking protocol on Ethereum.Source:Karak


Related:Crypto on track to hit 1B users by end of 2025 — AnalystEigenLayer airdrop disappointment could lead to a drop in TVL


On April 29, EigenLayer released a white paper for its upcoming EIGEN token, which banned several jurisdictions from its upcoming airdrop, including the United States, Canada and several African and Asian countries.


The decision caused widespread criticism in the crypto community. Pseudonymous crypto trader Jay noted that it could be a significant opportunity for Karak in an April 29 X post:“Think Eigen has handed Karak a golden opportunity.”


EigenLayer’s decision to ban airdrop participants from key crypto jurisdictions could lead to a fall in TVL as stakers look for more lucrative alternatives, according to Lian. He said:“Farmers and stakers who were eagerly anticipating the EIGEN airdrop might now seek alternative platforms or protocols. Some may choose to reallocate their assets to other DeFi projects that offer more inclusive airdrop opportunities.”


Related:EigenLayer on the brink of potential yield crisis


According to crypto analyst and Crypto Banter podcast host Ran Neuner, EigenLayer is a venture capitalist (VC) scam aiming to attract liquidity from unsophisticated retail investors. He wrote in an April 30 X post:“Early VCs get in early at small valuations — Retail will get in at $15bn+. Low circulation high [fully diluted valuation] at the start — let’s fleece more retail…”Source:Ran Neuner


Neuner argued that the airdrop ban in key unbanked jurisdictions, along with the decision to keep airdropped EIGEN tokens locked until the team decides, are mainly in favor of early-stage VC investors:“Any retail investor that buys this in the first 3 years will be punished.”


While Karak could become the next leading restaking protocol, multi-asset restaking could introduce more protocol risks compared to EigenLayer, according to Alon Muroch, CEO of SSV.Labs. Muroch told Cointelegraph:“With more complexity comes more risk. EigenLayer has put its eggs in the Ethereum basket because Ethereum is the most secure and battle-tested proof-of-stake network and, therefore, a safer foundation for shared security.”


Related:Lido Finance hits 1M validators, fueling the growth of DeFi# Decentralization# Ethereum# DeFi# Ethereum 2.0# StakingAdd reaction

News Feed

Prashant Jha9 hours agoAsian markets surge as European stocks show mixed performanceAsian stocks surged across the board on Wednesday led by South Korean market, while European markets had a mixed day.378 Total views5 To
China’s Crypto Could Become a Global Reserve Currency: Circle CEO
Leading fin-tech entrepreneur thinks China"s state-backed cryptocurrency could spearhead global adoption of the yuan as a reserve asset. | Image: ShutterstockCircle CEO Jeremy Allai
Grayscale files for ‘mini’ spot Bitcoin ETF
Zoltan Vardai10 hours agoGrayscale files for ‘mini’ spot Bitcoin ETFThe new Bitcoin trust could offer investors non-taxable exposure to Bitcoin, according to Bloomberg analysts.2274 Total views2 Total sharesListen to
Martin Young4 hours agoCircle CEO: 70% of USDC adoption comes from outside the USMajor stablecoin issuers Tether and Circle are focusing on markets outside the United States, where adoption is growing.1544 Total views72
Argentinian Government Raises Energy Costs Almost 4x for Cryptocurrency Miners
Argentinian Government Raises Energy Costs Almost 4x for Cryptocurrency Miners The Energy Secretary of Argentina eliminated power subsidies for cryptocurrency miners, raising the c
$15 Trillion Market Cap For Bitcoin? Crypto Firm CEO Predicts Explosive Growth
Este artículo también está disponible en español. A prominent figure in the cryptocurrency space made a bold prediction that Bitcoin could hit a total market capitalizati
Crypto Trading, Mining Are Illegal and Punishable, Nepal Central Bank Warns
Crypto Trading, Mining Are Illegal and Punishable, Nepal Central Bank Warns Mining and trading of cryptocurrencies are illegal in Nepal, the country’s central bank has remin
Russia’s Roskomnadzor Watchdog Blocks 6 VPN Providers
Russia’s Roskomnadzor Watchdog Blocks 6 VPN Providers Russian communications watchdog, Roskomnadzor, has restricted another six VPN providers. The agency says the platforms have
David Attlee13 hours agoGerman crypto regulator calls for global rules to also govern niche finance centersBaFin’s top executive stresses the risks of crypto and calls for global regulation to apply to all financial ce
SEC may receive ‘only a fraction’ of Terraform’s settlement
Ana Paula Pereira7 hours agoSEC may receive ‘only a fraction’ of Terraform’s settlementThe U.S. SEC still has to queue up behind secured creditors to receive a payment from Terraform Labs’ multibillion-dollar set
SUI Inches Closer To $3.9 Support Under Growing Bearish Influence
Este artículo también está disponible en español. SUIis steadily approaching the $3.9 level, weighed down by increasing bearish momentum that has put pressure on buyers t
Vitalik Buterin Warns Current Crypto Wallets Are Not Ready for Mainstream Adoption
Vitalik Buterin Warns Current Crypto Wallets Are Not Ready for Mainstream Adoption The cofounder of the world’s second-largest cryptocurrency, ethereum, wa