EigenLayer’s EIGEN Token Set for Bullish Debut Amid High Anticipation

Ethereum’s restaking protocol EigenLayer is on the cusp of a significant milestone as it prepares to unlock its native token, EIGEN. The highly anticipated event is scheduled for October 1, 2024, at 5:00 am UTC, with major cryptocurrency exchanges like Binance and Bitfinex poised to list the token shortly after.

Bullish Signals from Derivative Markets

Derivative markets are signaling a strong debut for EIGEN. According to data from decentralized perpetual exchanges Aevo and Hyperliquid, EIGEN-linked perpetual futures indicate a spot price of approximately $4 per token. This pricing suggests a fully diluted value (FDV) exceeding $6.7 billion, based on the total supply of 1.67 billion EIGEN tokens.

The price of EIGEN perps has seen a steady climb since early September, nearly doubling from lows of around $2 per token. However, it’s worth noting that the 24-hour trading volume on these platforms totals only about $1 million, which may not fully reflect broader market dynamics.

OTC Trading and Community Sentiment

Informal over-the-counter (OTC) trades have reportedly seen EIGEN’s price rise from around $2 in August to roughly $3.50 as recently as September 24. These figures align with discussions in EigenLayer’s community forums, indicating growing interest and positive sentiment surrounding the token.

EigenLayer’s Market Position

As of September 30, EigenLayer commanded nearly $12 billion in total value locked (TVL), according to data from DefiLlama. The protocol allows users to “restake” their tokens, including EIGEN, as collateral to secure other networks or “actively validated services” (AVS).

Ecosystem Growth and Future Prospects

EigenLayer’s ecosystem is expanding rapidly, with EigenDA, an affiliated AVS, already paying restakers in Ether (ETH) and EIGEN rewards. Other AVS, such as Arpa Network, are following suit. Industry observers note that over 60 AVS are reportedly building on top of EigenLayer, positioning it as a potential “AWS for decentralized services.”

Market Expectations and Challenges

While the market sentiment appears bullish, some analysts caution about potential short-term volatility. “Most likely scenario is airdrop farmers dumping weighs on the price for a bit, but I think there will be a lot of interest in picking up cheap EIGEN for the rest of the cycle,” noted Aylo, a pseudonymous founder in the crypto market.

ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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