DeFi Ponzi Schemes: Analyst’s Take on 2024 Restaking Industry & EigenLayer Airdrop

Crypto analyst Miles Deutscher expects the 2024 decentralized finance Ponzi narratives won’t reoccur despite the rise of the restaking industry. He adds, however, that the EigenLayer airdrop, which is the largest drop In 2024, may cause the yield-hunting frenzy of previous DeFi Ponzi schemes.

Aside from the restaking narrative, Deutscher is betting on artificial intelligence, BRC-20, real-world asset tokenization, gaming NFTs, and decentralized infrastructure projects as the most lucrative narratives to watch.

EigenLayer Pulls $2B in Restaking Volume

Deutscher said projects like EigenLayer encourage crypto staking on multiple blockchains, making staking coins more capital-efficient. The user can secure multiple blockchains at once and receive rewards from all. For example, staked Ethereum on liquidity platforms like Lido can be restaked on restaking apps on EigenLayer, allowing what Deutscher calls yield-stacking.

Read more: What Is Liquid Staking in Crypto?

However, projects like EigenLayer, based on the explanation of tokenomics, seem like Ponzi schemes at face value, Deutscher said. Their sustainability is also up for debate.

“I see restaking as the next version of the DeFi Ponzis…The re-staking narrative in my opinion is very reminiscent of the 2021 DeFi Ponzi protocols. When people take on more risk, they searching for yield, they’re hungry for opportunity on chain, and that is what really saw the DeFi Ponzi Mania of 2021[and] 2022.”