In the fast-paced world of DeFi, Renzo Protocol is making waves with its liquid restaking token, ezETH. According to a recent update from Token Terminal, deposits of ezETH on Aave have ballooned by about $380 million since the start of 2025. What's even more interesting? Nearly 35% of these deposits are now happening on Linea, a popular Ethereum layer-2 network. This shift highlights how users are flocking to more efficient chains for better yields and lower fees.

What is Renzo Protocol and ezETH?

If you're new to this, Renzo Protocol is a liquid restaking platform built on EigenLayer, Symbiotic, and Jito. It lets users restake their ETH (Ethereum's native token) to secure other networks while keeping their assets liquid. When you deposit ETH or liquid staking tokens (LSTs) into Renzo, you get ezETH in return. This token represents your restaked position and can be used across DeFi apps like Aave for lending, borrowing, or earning extra yields.

Think of it as supercharging your ETH: instead of just staking it, you're restaking it to earn more rewards without locking it up completely. For more details, check out the Renzo Protocol website.

The Growth Story on Aave

Aave is one of the biggest decentralized lending platforms out there, allowing users to deposit assets as collateral and borrow against them. Depositing ezETH on Aave means holders can earn interest while still benefiting from restaking rewards.

The chart from Token Terminal shows a clear trend: starting from January 2025, deposits dipped initially but then surged dramatically. By mid-2025, total deposits climbed toward the $1 billion mark, with a notable spike in activity on Linea. Other chains like Ethereum mainnet, Arbitrum One, and Base are in the mix, but Linea's blue section on the graph is growing fast.

This growth aligns with key developments in 2025. For instance, Aave proposed integrating ezETH into its core pool in July, enabling leveraged yield strategies. By August, a community vote approved adding ezETH as collateral on Aave V3, opening up new ways for users to leverage their holdings. These moves likely fueled the deposit boom.

Why Linea is Dominating

Linea, a zkEVM layer-2 solution on Ethereum, has been gaining traction for its low transaction costs and seamless compatibility with Ethereum apps. Renzo integrated native restaking on Linea back in early 2024, making it easy for users to mint ezETH without hefty gas fees.

With 35% of ezETH deposits on Aave now on Linea, it's clear that efficiency wins. Lower fees mean more net yield for depositors, especially in a year where Ethereum gas prices have fluctuated. Plus, Linea's ecosystem is booming with DeFi projects, making it a hotspot for yield farming.

For context, Linea's integration with Renzo allows direct restaking of ETH into ezETH, boosting liquidity and accessibility. If you're interested in Linea's role, their blog post on the partnership from 2024 still holds relevant insights.

Implications for DeFi and Beyond

This surge isn't just numbers on a chart—it's a sign of maturing DeFi infrastructure. Liquid restaking tokens like ezETH are bridging staking and DeFi, letting users stack yields without sacrificing liquidity. For blockchain practitioners, this means more opportunities to optimize portfolios.

In the broader crypto space, especially around meme tokens and volatile assets, increased liquidity on platforms like Aave can indirectly support trading and speculation. More ETH locked in restaking could stabilize yields, attracting institutional players and retail users alike.

As of now, ezETH's price hovers around $4,168, with solid trading volume. Keep an eye on CoinMarketCap for live updates.

Wrapping Up

Renzo's ezETH is proving its mettle on Aave, with massive growth and Linea leading the charge. If you're into DeFi, this is a trend worth watching—it could reshape how we think about restaking and layer-2 adoption. Stay tuned to Meme Insider for more updates on blockchain tech that powers the meme economy and beyond.