Eigenlayer Enters Top 100 Cryptos Following Airdrop — EIGEN Sustains Price Above $3.75
EIGEN Debuts in Top 100 | Credit: Derek Fenech
Key Takeaways
- EigenLayer announced its Eigenlayer (EIGEN) airdrop on Oct. 1.
- The EIGEN token immediately cracked the top 100 cryptocurrencies.
- What will the EIGEN price be in the following months?
EigenLayer is an innovative protocol that allows Ethereum validators to retake their ETH. The protocol was announced on March 22, 2023, and the native token Eigenlayer (EIGEN) finally went live on Oct. 1, 2024.
Shortly after its launch, EIGEN cracked the top 100 biggest cryptocurrencies ranked by their market capitalization. With that in mind, let’s analyze the EIGEN airdrop and the price movement and see where it might head next.
Eigenlayer Airdrop
On Oct. 1, the Eigen Foundation announced the unlocking of the EIGEN token. Users can now trade, transfer, or stake the asset.
EigenLayer functions like a cloud platform, helping developers build decentralized networks by leveraging Ethereum’s trust. It will also enable the safe allocation of staked assets for use in other services.
As per the announcement , developers can build Actively Validated Services (AVS) that leverage EIGEN staking.
Operators run various functions, such as oracles, on AVSs without needing decentralized nodes. This is done by leveraging EigenLayer’s restaked capital , currently over $12 billion.
Staked ETH grew considerably after restaking deposits opened on Eigenlayer in June 2023.
Then, the foundation announced new programmatic incentives that will reward stakers and AVS operators.
For Eigenlayer tokenomics, EIGEN’s initial supply will be 1,673,646,668 tokens, which will be flexible and subject to inflation.
Most of the supply will go to investors, early contributors, and community initiatives/ecosystem development.
At $3.78, EIGEN has a market cap of $705 million and a fully diluted valuation of $6.35 billion.
The sentiment is extremely positive, citing undervaluation since EigenLlayer has a similar valuation to Celestia, EtherFi, or Arbitrum.
While its success is likely tied to the growth of its ecosystem, it already has a vibrant AVS ecosystem with several protocols launched and a healthy restaking economy.
EIGEN Price Above $3.75
Several centralized exchanges have already listed EIGEN, including Binance. Since there are less than two hours of price history, making an accurate price prediction for the future EIGEN movement is nearly impossible.
In any case, the EIGEN price increased initially, reaching a high of $4.58, but then fell. The decrease is a completed five-wave downward movement, which took the shape of a wedge.
Then, it broke out from the wedge but is back at its pre-breakout levels.
Read More: EigenLayer Plans EIGEN Token
Fibonacci levels can help determine the next areas of interest. In case of a breakout, the 0.618 Fibonacci retracement level can provide resistance at $4.40, while the 1.61 extension of the previous movement at $3.75 can provide support if EIGEN breaks down.
Future Looks Bright
The Eigenlayer airdrop has been followed with much fanfare. It immediately cracked the top 100 biggest cryptocurrencies bodes well for the future trend. While the EIGEN price trend cannot be confidently determined because of the lack of data, EigenLayer already has a thriving ecosystem that could positively affect the EIGEN price.
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