Ethereum Restaking Growth Raises Concerns Over Network Stability

• Ethereum restaking protocols have seen nearly $13B locked, raising concerns about risks to network stability.

• Coinbase analysts highlight dangers with restaking rewards through liquid restaking tokens (LRTs).

• Restaking process allows users to stake derivatives and earn LRTs for more rewards, concentrating funds in similar validators.

• Ethereum developers caution against potential for excessive leverage with restaking.

• Growth driven by protocols like EigenLayer that allow restaking liquid staking tokens to secure third-party networks while maintaining user access to funds.