Why the pledge of $5.2 billion in ETH could potentially collapse cryptocurrency prices

Of course, it is not ruled out that Restaking indeed creates a large number of new applications (and corresponding new “value”?), but in the process, it unavoidably brings excessive collateralization to the chain that does not contribute to security, as well as additional inflationary pressure. In response, protocol developers are actively developing the concept of minimum viable issuance and there are several proposals being discussed to reduce inflation and restrict ETH from entering PoS staking.