Possible Reason for US$5.2 Billion ETH Collateral Pledge: Could it Crush Coin Prices Again?

Of course, it is not ruled out that Restaking indeed creates a considerable amount of new applications (and the corresponding new “value”?), but in the process, it inevitably brings excessive over-collateralization to the chain without contributing to security, as well as additional inflationary pressures that come with it. In response, protocol developers are actively developing the concept of minimum viable issuance and there are several proposals being discussed to reduce inflation and limit ETH entering PoS staking.