Tron’s Justin Sun dominates liquid restaking protocol with 46% of depositsThis substantial deposit represents 46% of all deposits into the Swell L2 protocol. The 120,000 eETH, is a significant injection of capital into the platform.
Liquid restaking protocols like Swell L2 enable users to stake Ethereum and receive a liquid token, such as eETH, which can be used across various DeFi applications to earn additional returns. By depositing such a large sum, Sun has effectively become the leading player on Swell L2.
Sun’s entry into the liquid restaking space is part of his broader involvement in decentralized finance (DeFi). Last year, he played a key role in averting a liquidity crisis on Curve Finance by purchasing $2.3 million worth of CRV tokens.
Swell L2 has seen rapid growth, with its total value locked (TVL) approaching $3 billion ahead of the upcoming launch of its native governance token. Sun’s major deposit is likely to increase the protocol’s TVL further, reinforcing its position in the DeFi ecosystem.
While Justin Sun’s prominence on Swell L2 is notable, it raises questions about the long-term impact on the platform’s decentralization and governance. Regulators and industry observers will likely pay close attention to such large-scale deposits from influential figures in the crypto industry.
