EigenLayer (EIGEN) Debuts in the Market, Showing Price Volatility Amid Launch
EigenLayer, an Ethereum-based restaking protocol, officially entered the cryptocurrency market on October 1, with its native token EIGEN now available for trading and staking. The token has been listed on several major exchanges, including Binance, Kraken, Coinbase, ByBit, and OKX, following its final airdrop distribution through Puffer Finance.
Coinbase, one of the largest US cryptocurrency exchanges by trading volume, added EIGEN to its platform yesterday. This addition is expected to significantly enhance the token’s liquidity, especially for holders who received it during earlier airdrops this year.
EigenLayer Price Fluctuates Amid Market Debut
Trading for EIGEN commenced with the token unlocking at 5:00 AM UTC, with prices fluctuating between $3.50 and $4.50. As of now, EIGEN is trading at $3.74, representing a 4% decrease, in line with broader trends affecting the crypto market.
The launch of EIGEN is part of EigenLayer’s broader strategy to increase the utility of staked assets. By allowing users to restake their ETH or other Liquid Staking Tokens (LSTs) to support decentralized applications within its ecosystem, EigenLayer aims to enhance the value of these assets and fortify the security of the Ethereum network.
Since its introduction, EIGEN has swiftly risen into the top 100 tokens by market capitalization, highlighting the growing interest and the potential for increased community engagement. This milestone also marks a significant step forward in EigenLayer’s plans to play a key role in decentralized finance governance.
Large Holders Move and Accumulate EIGEN Tokens
On-chain data from SpotOnChain revealed notable activity among large-scale token holders. Notably, TRON founder Justin Sun transferred 5.24 million EIGEN tokens to the HTX exchange. In addition, HashKey Capital moved 496,013 EIGEN tokens to Binance, and another prominent wallet transferred 253,947 EIGEN.
Despite some significant sales from large holders, the market has seen accumulations as well. For instance, two whales recently purchased a combined 702,324 EIGEN tokens, valued at approximately $2.86 million, according to Lookonchain data.
This dynamic trading environment reflects the heightened interest and the high stakes surrounding EIGEN’s market performance. The platform’s innovative approach to leveraging staked assets positions EigenLayer to make a significant impact on decentralized finance.
EigenLayer TVL and Market Sentiment
According to DeFiLlama, EigenLayer’s Total Value Locked (TVL) remains strong, currently exceeding $11 billion. After surpassing $1 billion in December 2023, the protocol saw rapid growth, peaking at over $20 billion in June. Although there has been some outflow since that peak, EigenLayer has maintained a robust TVL of $12 billion, signaling continued investor confidence despite market volatility.
The platform’s market capitalization stands at approximately $674.61 million, with 14.9% of tokens set to unlock in the next six days.
Can EIGEN Rebound from Market Volatility?
If the current bearish trend persists, the EIGEN price may test the critical $3 support level. However, with sustained investor interest and upcoming token unlocks, there remains potential for a price rebound, which could drive EIGEN back up to the $5 mark.
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