Bitcoin at work

Will Bitcoin Go to Work? The Bold Bet on Restaking’s Future

By Myxoplixx | CryptoCurious | 3 May 2025


The prediction that 80% of all Bitcoin will be restaked in EigenLayer by 2026 is an ambitious and fascinating idea that shows just how quickly the world of decentralized finance (DeFi) is changing. Restaking is a process that was first developed for Ethereum, where people who already have their assets staked can “restake” them to help secure other protocols and earn extra rewards. Recently, EigenLayer has made it possible for Bitcoin holders to get involved by wrapping their BTC as tokens like tBTC or LBTC, which can then be used on the Ethereum network. This means Bitcoin, which has mostly been seen as a store of value, could now be put to work earning yield and helping secure new decentralized services.

If 80% of all Bitcoin really did end up restaked in EigenLayer, it would be a huge shift for the entire crypto ecosystem. The main reason people might want to do this is the promise of earning more rewards. Instead of just letting their Bitcoin sit in a wallet, holders could use it to earn yield from multiple sources. At the same time, new protocols would benefit from the security and capital that Bitcoin brings, making it easier and safer for them to grow. As more and more people join in, there could be a snowball effect, with restaking becoming the norm for Bitcoin holders who want their assets to do more than just sit idle.

However, there are some serious risks and challenges to consider. Restaking introduces new dangers, like the possibility of losing some or all of your Bitcoin if the protocols you’re helping to secure run into trouble or get attacked. There’s also the risk that the bridges and smart contracts used to wrap and move Bitcoin between blockchains could be hacked. Plus, using Bitcoin in this way changes its traditional security model, which is based on proof-of-work mining, not proof-of-stake or smart contracts. Right now, only a small fraction of all Bitcoin is actually wrapped and used in DeFi, so reaching 80% in just a couple of years would require a massive change in how people think about and use their Bitcoin.

While the idea of 80% of Bitcoin being restaked in EigenLayer by 2026 is probably unrealistic, it does highlight a real trend: more and more people want to make their Bitcoin productive in the world of DeFi. If the technology keeps improving, the rewards stay attractive, and the risks are managed well, we could see a significant portion of Bitcoin moving into restaking protocols. Still, it’s likely that adoption will be slower and more cautious than this bold prediction suggests.

 

 

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Myxoplixx
Myxoplixx Verified Member

Just a dude with not so common sense making non-financial observations 😏


CryptoCurious
CryptoCurious

Insight into the cryptoverse, just better than them other jokers 😏

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