Is It Time to Buy in EIGEN?

EigenLayer (EIGEN) price, an Ethereum-based restaking protocol, marked its entrance into the cryptocurrency market on October 1. The token, which can now be traded and staked, was listed on several major exchanges, including Binance, Kraken, Coinbase, ByBit, and OKX. This listing follows the final distribution of tokens through airdrops by Puffer Finance.

Coinbase, a leading US crypto exchange by trade volume, added EIGEN to its platform yesterday. This move significantly boosts the token’s liquidity, which many holders initially received through airdrops earlier this year.

EigenLayer Price Fluctuatuats Amid Market Debut

The EigenLayer price was marked by unlocking at 5:00 AM UTC, and trading prices ranged from $3.50 to $4.50. As of now, the EIGEN price is trading at $3.74, reflecting a slight decrease of 4% amid broader crypto market downtrends.

EIGEN’s market introduction is part of EigenLayer’s strategy to enhance the utility of staked assets. The platform allows users to leverage their staked ETH or other Liquid Staking Tokens (LSTs) to support decentralized applications within the EigenLayer ecosystem. This approach aims to increase the assets’ utility and strengthen the overall security of the Ethereum ecosystem.

Since trading began, the EigenLayer price has entered the top 100 tokens by market capitalization. This rise indicates the growing interest and potential for expansion and engagement within the project. It is also poised to enhance governance and bolster EigenLayer’s role in the decentralized landscape.

Transaction data from SpotOnChain highlighted some significant activities involving large-scale holders. Justin Sun, the founder of TRON, moved a notable 5.24 million EIGEN tokens to the HTX exchange. Additionally, other substantial transfers included 496,013 EIGEN tokens sent to Binance by HashKey Capital and 253,947 EIGEN from another prominent wallet.

Despite some large holders choosing to sell, there are notable accumulations, too. For instance, two whales purchased 702,324 EIGEN tokens, valued at approximately $2.86 million, according to lookonchain data.

This dynamic trading environment underscores the high stakes and intense interest surrounding the EigenLayer price as it makes its mark in the crypto world. The project’s innovative use of staked assets within its ecosystem promises to redefine engagement and utility in the decentralized finance landscape.

According to data from DeFiLlama, EigenLayer’s Total Value Locked (TVL) has sustained a significant market presence with current holdings of over $11 billion. After surpassing the $1 billion mark in December 2023, EigenLayer’s TVL saw a rapid ascent, peaking at just over $20 billion in June. 

Will EIGEN Rebound Amidst Market Fluctuations? 

Since that high, the staking protocol has experienced notable outflows but maintains a robust figure of $12 billion. This figure indicates sustained investor trust and engagement despite market fluctuations. The platform’s market cap presently stands at approximately $674.61 million, with an upcoming unlock of 14.9% of holdings set for release in the next six days.

The EigenLayer price may test the crucial $3 support level if bearish trends persist. However, with sustained investor interest and upcoming token unlocks, there’s potential for a rebound that could see prices rise to as high as $5.

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Coingape Staff

CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.