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Restaking in the realm of Ethereum staking involves taking your accumulated staking rewards and adding them back to your staked Ether (ETH) balance. This process compounds your earnings as you now earn rewards on the initial staking deposit plus the increased amount from reinvesting rewards.

Restaking can be manual or automated depending on the staking platform or service used. This strategy is important for long-term validators seeking to maximize their rewards. Think of it like automatically reinvesting dividends in the stock market – your staking “shares” grow over time, leading to greater potential returns within the Ethereum ecosystem.