EIGEN Token Sees Volatility as Trading Begins
At press time, the EIGEN token is trading at $4.26, with a fully diluted value (FDV) of $7.16 billion. The token will be listed on Binance and other exchanges on October 1st, marking the beginning of its trading journey. In the past few months, the total value locked (TVL) on EigenLayer has dropped by 50% since June, which may indicate some level of market uncertainty surrounding the protocol.
EIGEN Token Listed on Centralized Exchanges
The EIGEN token was listed on several centralized exchanges, including Binance and MEXC, on October 1st at 05:00 UTC. At its debut, the token had an FDV of $6.51 billion, which is significantly higher than its current trading price. The initial circulating supply of EIGEN is 185 million tokens, with a total supply of 1.68 billion tokens. This means that there are still a substantial number of tokens available for trading and investment.
EIGEN Token’s Unique Approach to Governance
Unlike commonly-issued governance tokens, EigenLayer has taken a different approach to the EIGEN token. Instead of labeling it as a traditional governance token, EigenLayer has termed it the "Universal Intersubjective Work Token." A blog post on the protocol’s website outlines the potential benefits of this unique approach, including solving challenges related to universality, isolation, metering, and compensation. The token will also utilize social consensus and forking to execute a variety of digital tasks.
EIGEN Token’s Trading Volatility
After initially rising by over 13% to $4.26, the EIGEN token has since fallen back to $3.77. This volatility in trading price may be a cause for concern among investors, who are looking for more stability and consistency in their investments. However, it is essential to note that this is not an uncommon phenomenon in the cryptocurrency market, where prices can fluctuate rapidly due to various market factors.
EIGEN Token’s Airdrop Program
The EIGEN token airdropped 86 million tokens to users who interacted with the protocol earlier this year. This move was designed to incentivize users and encourage more participation in the EigenLayer ecosystem. However, it has also led to some outflows from the protocol, as stakers exited their positions after meeting the criteria for the airdrop.
EigenLayer’s TVL Drop
In recent months, EigenLayer has experienced outflows, with its total value locked (TVL) dropping from $20 billion in June to around the current $10 billion. This is partly due to stakers exiting their positions after receiving the airdropped tokens and meeting the criteria for the reward. However, it is essential to note that this drop in TVL does not necessarily indicate any issues with the protocol itself.
EigenLayer’s Built-in Yield Generation
The EigenLayer protocol allows users to secure additional networks in return for additional yield on their deposits. This feature can help attract more liquidity and increase the overall value locked (TVL) within the protocol. However, it is essential to note that this feature may also lead to some market volatility, as users exit or enter positions based on changing market conditions.
EIGEN Token’s Potential Benefits
The EIGEN token has been designed to address various challenges related to digital tasks and compensation. By using social consensus and forking, the token can execute a variety of digital tasks efficiently and effectively. This unique approach may provide some benefits to users and investors who are looking for more flexible and adaptable solutions in the cryptocurrency market.
Conclusion
The EIGEN token has started trading on several centralized exchanges, including Binance and MEXC, with an initial FDV of $6.51 billion. However, its trading price has been volatile, dropping from $4.26 to $3.77 after a brief surge. The protocol’s TVL has also dropped by 50% since June, partly due to stakers exiting their positions after meeting the criteria for the airdrop. Despite these market fluctuations, the EIGEN token still holds significant potential benefits for users and investors who are looking for more flexible and adaptable solutions in the cryptocurrency market.