Staking Protocol EigenLayer Raises $50M Amid Crypto Winter

Blockchain Capital led the round for the system that allows Ethereum stakers to reuse the tokens.

AccessTimeIconMar 28, 2023 at 4:00 p.m. UTC
Updated May 9, 2023 at 4:11 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global event for everything crypto, blockchain and Web3.Register Now

Staking protocol developer EigenLabs has raised $50 million in a Series A round led by Blockchain Capital. The funding comes as EigenLabs prepares to launch the initial version of its EigenLayer protocol in phases throughout the year. The size of the round is notable during a protracted crypto winter that has seen investors focusing more on smaller, early-stage rounds.

Seattle-based EigenLabs was founded in 2021 to address the issue that it’s difficult to improve blockchain infrastructure without launching a new blockchain and the so-called trust network that offers security for the chain.

  • Wormhole’s W Token Has a 999% Weekly Return; Why VanEck Is Bullish on Ethereum Layer 2s
    Wormhole’s W Token Has a 999% Weekly Return; Why VanEck Is Bullish on Ethereum Layer 2s
  • BlackRock Joins Asset Tokenization Race; North Korea Hackers Stole $3B in Crypto Since 2017
    BlackRock Joins Asset Tokenization Race; North Korea Hackers Stole $3B in Crypto Since 2017
  • What Does State Inquiry Mean for Ethereum?
    What Does State Inquiry Mean for Ethereum?
  • Solana Passes Ethereum on DEX Volume
    Solana Passes Ethereum on DEX Volume
  • In September Ethereum shifted from a proof-of-work to a proof-of-stake consensus method, which replaced crypto miners with validators, or “stakers,” who lock up tokens within the network to help keep it secure in exchange for financial reward. EigenLayer allows users to “restake” tokens that are locked up to validate Ethereum so those tokens can be reused to help secure other protocols.

    “One of the central bottlenecks to innovation in today’s crypto ecosystem is the requirement for projects to bootstrap trust, or cryptoeconomic security,” said EigenLabs founder and CEO Sreeram Kannan in the press release. “We started working on EigenLayer in the hopes of creating a new model in which developers can easily consume trust, instead of needing to build trust, and design powerful systems of assurances that make the crypto ecosystem safer and more useful.” .

    Kannan is an associate professor at the University of Washington and runs the UW Blockchain Lab. The EigenLayer team has deep experience with tech companies, including Amazon Web Services, Meta Platforms (the former Facebook) and Microsoft.

    Other backers in the round included Electric Capital, Polychain Capital, Hack VC, Finality Capital Partners, andCoinbase Ventures, among others. EigenLabs last raised funds in August with a $14.5 million seed round led by Polychain Capital and Ethereal Ventures.

    Edited by Stephen Alpher.


    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

    Brandy Betz

    Brandy covered crypto-related venture capital deals for CoinDesk.

    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to to register and buy your pass now.