EIGEN Crypto Unlock by EigenLayer: A Detailed Overview
EigenLayer, an Ethereum-based restaking protocol, started off the month of October by unlocking and listing its EIGEN cryptocurrency. As per Eigen Foundation’s official announcement, the unlocking signifies that the token is now tradable and available for staking.
This move is expected to propel EigenLayer towards rapid economic expansion and increased participation. Furthermore, it is anticipated to enhance governance and solidify the project’s position in the decentralized landscape.
Several major exchanges have already listed the EIGEN token, including the renowned Binance.
Initially, EIGEN had an opening price of $4.05 and a fully diluted valuation of $6.8 billion. Subsequently, it experienced a slight decline to $3.85 at the time of writing, with a market capitalization of $727.14 billion. The token has a maximum supply of 1.68 billion, while its initial circulating supply stood at 186.58 million coins.
On its debut listing day, EIGEN reached a high of $4.45 and a low of $3.52. Despite the recent token unlock event, EigenLayer’s network has displayed considerable activity leading up to 2024. The total value locked (TVL) witnessed a remarkable surge in the first half of the year.
In December 2023, EigenLayer’s TVL surpassed the $1 billion milestone, reaching a peak of over $20 billion in June. Although the staking protocol encountered notable outflows thereafter, its TVL remains respectable at $12 billion.
Can the EIGEN launch spur further TVL growth?
The launch of EIGEN could generate significant social exposure, potentially incentivizing more holders to stake their tokens for rewards, thus fostering an uptrend in TVL.
Furthermore, the market has been displaying signs of recovery following a bearish phase between June and August. This recovery, coupled with optimistic market sentiments, might bode well for EIGEN staking activities.
Moreover, the unlocking of EIGEN may stimulate increased address activity. Address activity had been relatively subdued in recent months, with May recording the highest number of active addresses in a single day so far this year.
The peak saw slightly over 33,000 active addresses and 13,000 new addresses being added.
However, EigenLayer’s active addresses witnessed a significant decline thereafter. Daily active addresses and new addresses dipped below 100 in the months of August and September, although there was a mild resurgence in address activity in the latter half of September.
With the EIGEN token now unlocked, the industry is keen to observe how this development will influence its price trajectory moving forward.