EigenLayer introduces a groundbreaking 'restaking' primitive that allows Ethereum stakers to repurpose their staked ETH to secure additional protocols and services, known as Actively Validated Services (AVSs). This innovation effectively extends Ethereum's trust layer to a broader ecosystem, enabling new middleware, data availability layers, and oracle networks to bootstrap security without building independent validator sets.

The protocol has attracted substantial TVL, reflecting strong market confidence in its approach. Founded by Sreeram Kannan, a University of Washington professor, the project benefits from deep academic rigor and strong institutional backing from top-tier venture firms. The EIGEN token adds a novel 'intersubjective staking' mechanism for handling faults beyond on-chain verifiability.

Key strengths include its capital efficiency for stakers, composability with the broader Ethereum ecosystem, and potential to catalyze an entirely new category of decentralized services. However, risks are notable: restaking introduces compounding slashing exposure, smart contract complexity increases attack surfaces, and the nascent AVS ecosystem remains largely unproven. Regulatory scrutiny around staking derivatives also warrants monitoring. Despite these concerns, EigenLayer represents one of the most significant infrastructure innovations in Ethereum's recent history.