@l785213m
How quickly does restaking APY recover post‑crash?
The recovery of restaking APY post-crash is unlikely to be V-shaped and would be significantly slower and more uncertain than a recovery in base ETH staking yield. A market crash that triggers a restaking drawdown does so by damaging the perceived value and security of the AVS ecosystem. Recovering requires: 1) Broader crypto market recovery, 2) Regained confidence in the specific AVSes that faltered, and 3) A renewed inflow of stake into the restaking ecosystem. This is a process of trust-rebuilding, not just a technical rebound. While base ETH staking yield can recover as network activity resumes, restaking APY depends on the more fragile and complex dynamics of narrative, risk appetite, and the iterative improvement of a multi-faceted protocol landscape.
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