EigenLayer still controls roughly 94% of the entire restaking market. That is not a temporary lead — it is structural dominance. When Kelp DAO’s bridge was exploited for ~$300M in April, the restaking sector saw roughly $5.5B in withdrawals within days. One protocol’s failure became a systemic event because almost everything was stacked on the same foundation.
The narrative around restaking has always been about “shared security” and extra yield. What gets less attention is the actual risk architecture: a single restaked ETH position can now be exposed to EigenLayer’s own contracts, multiple AVS slashing conditions, the LRT wrapper, and any DeFi protocol that accepts that LRT as collateral. The yield is real So is the multiplication of failure points.
Top five liquid restaking protocols still control around 96% of the LRT market. Operator concentration remains opaque to most end users. The April episode did not kill restaking it just made the concentration risk impossible to ignore. The extra yield was never free. It was compensation for a risk stack that few people were pricing correctly until the withdrawals started.
Competitors still frame restaking as the next yield primitive. The more accurate framing after April is simpler: how much of the system can actually tolerate a single large operator or contract failure without cascading.
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