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The long-awaited trading of Eigenlayer’s EIGEN token began today, following the removal of transfer restrictions that have been in place since the token’s launch in May. Major cryptocurrency exchanges including Binance, Kraken, Coinbase, ByBit, and OKX have listed EIGEN, providing liquidity to token holders, many of whom received it through airdrops earlier this year.
In a statement released via X, the Eigen Foundation highlighted the importance of this milestone: “We are very excited to announce the launch of the EIGEN token, a major step for the Eigenlayer ecosystem. This opens up new opportunities for innovation, shared security, and participation across the network.”
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They added that the open source enables developers to build Active Validated Services (AVSs) using EIGEN staking, which improves protocol security and performance. “The opening of EIGEN marks the beginning of a wider connection. It serves as a catalyst for economic expansion, governance, and protocol development, which furthers the growth and strengthening of the distributed ecosystem,” added the Eigen Foundation.
Buy or Sell Eigenlayer (EIGEN)?
Market sentiment was mixed on the first day of trading. Lookonchain has reported significant whale purchases, showing strong interest from large investors. Another transaction involved the address of buying 383,672 EIGEN at $4.05, totaling $1.55 million. Another address spent 1.31 million USDC to get 318,651 EIGEN for $4.10.
2 whales bought 702,324 $EIGEN($2.86M) in the last 4 hours!
0x2dcd used 588 $ETH($1.55M) 383,672 purchases $EIGEN closed at 4.05 US dollars.
0xb112 spent 1.31M $USDC purchase 318,651 $EIGEN closed at 4.1 US dollars. pic.twitter.com/Dzt65tYwJT
– Lookonchain (@lookonchain) October 1, 2024
Despite these purchases, not all activity has been bullish; Notable crypto whale GCR reportedly sold a significant amount of EIGEN shortly after opening, depositing over 250,000 EIGEN on Binance. “GCR (@GiganticRebirth) claimed an airdrop of 253,946 EIGEN($1.06M) in 7 bags and put it all on Binance 40 minutes ago. #GCR“Lookonchain reports.
Crypto analyst Aylo provided a comparison of EIGEN’s market performance relative to other tokens with X: “EIGEN launched exactly in line with the pre-market price, sitting at $7B FDV. A few coins with larger FDVs than EIGEN currently include OP ($8B), ONDO ($7.9B), UNI ($7.7B), FIL ($7.6), BCH ($7.2B),” he noted, suggesting that EigenLayer’s role in Ethereum’s ecosystem. can be an important factor in its estimation.
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“EigenLayer is a new program in Ethereum this cycle, and it has been found more than anything else in EVM in the last year. It really feels like the conditions that TIA introduced. Does the PA play the same way? There is nothing to open the year again…,” Aylo commented.
Daan Crypto Trades, another prominent analyst, commented on the market dynamics: “EIGEN Launched today. I think many market participants will be watching price action develop to gauge overall market strength and sentiment. So far, the price has been stagnant, and has risen slightly, although there are a number of airdrop participants selling their tokens. “
He speculated on the possibility of an increase in the market value of EIGEN, indicating that the current conditions may be better than in recent months. “If the market continues to trend from here I think EIGEN could go much higher than the $7B FDV. Earlier this year it was estimated to launch at $20B+ (in better market conditions). Having said that, I don’t own one yet but I would be a buyer for $2-3 and I think many would be. So I’m not sure if it gets there if it doesn’t do that in the first few days of airdrop sales,” concluded Daan.
At press time, EIGEN traded at $4.127.
Featured image from Coinbase, chart from TradingView.com