Ethereum-based restaking protocol EigenLayer kicked off October with the unlocking and listing of EIGEN crypto. According to Eigen Foundation's official X, the unlock means the token is now available for trading and staking.
Unlocking the EIGEN Token is expected to put EigenLayer on a path of rapid economic growth and increased participation. Additionally, it will aid governance and solidify the project’s position in the decentralized landscape.
Many top exchanges have listed the EIGEN Token, including Binance.
EIGEN opened at $4.05 and was valued at $6.8 billion after fully diluting. However, the price has dropped slightly 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 but an initial circulating supply of just 186.58 million coins.
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Source: Coinmarketcap
EIGEN peaked at $4.45 and bottomed at $3.52 on its first day of listing. Despite the token unlock event taking place in the last 24 hours, the EigenLayer network has been quite active in 2024. EigenLayer's total value locked has expanded parabolically in the first half of the year.
EigenLayer's TVL crossed the $1 billion mark in December 2023 and peaked at over $20 billion in June. The staking protocol has experienced significant outflows since then but still maintains a healthy TVL of $12 billion.
Source: DeFiLlama
Will the launch of EIGEN support TVL growth?
The launch of EIGEN could bring enough social attention to further boost TVL growth. Some Holders could be incentivized to stake their Tokens to receive rewards, thus potentially boosting.
Additionally, the market is showing a recovery from the bearish period from June to August. This recovery, coupled with bullish expectations, could favor EIGEN staking.
The EIGEN unlock could also help boost address activity. Activity has been on the decline over the past few months. The highest number of active addresses recorded in a single day so far this year was in May.
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Active addresses peaked at just over 33,000 and new addresses recorded were just over 13,000.
Source: DeFiLlama
EigenLayer's active address count has declined significantly since then. Daily active addresses and new addresses dropped below 100 in August and September. Address activity saw a slight recovery in the second half of September.
Now that EIGEN has been unlocked, we are curious to see how this development will affect price action going forward.
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