Key Takeaways
- EIGEN token is now freely tradable following the raise of switch restrictions.
- The token’s present market valuation stands at $7.1 billion.
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EigenLayer, the Ethereum-based restaking protocol, has formally eliminated switch restrictions on its native EIGEN token, permitting holders to maneuver and commerce their property freely. The token grew to become transferable at midnight EST and is now buying and selling on numerous cryptocurrency exchanges.
EIGEN debuted at $3.90 with a completely diluted valuation of $6.51 billion. As of press time, the token worth has elevated by over 13% to $4.26, giving EigenLayer a completely diluted valuation of $7.1 billion, in response to knowledge from CoinGecko.
The token distribution follows EigenLayer’s two stakedrops from an preliminary provide of 1.67 billion tokens. Roughly 86 million tokens had been airdropped to customers who had beforehand interacted with the protocol. Kairos Analysis estimates the present circulating provide to be round 200 million tokens, regardless of the protocol dealing with criticisms over battle of curiosity.
A number of main cryptocurrency exchanges, together with Binance and MEXC, are set to record EIGEN for buying and selling on October 1 at 05:00 UTC. This broader change availability is anticipated to extend liquidity and accessibility for the token.
Not like conventional governance tokens, EIGEN is designed as a “Common Intersubjective Work Token.” In keeping with EigenLayer’s weblog put up, the token goals to handle challenges of “universality, isolation, metering, and compensation” whereas leveraging social consensus and forking mechanisms to execute numerous digital duties securely.
The EIGEN token helps a crypto-economic safety system often called inter-subjective forking. This revolutionary strategy is meant to boost the protocol’s resilience and flexibility within the face of potential disputes or governance challenges.
EigenLayer’s platform permits customers to stake Ether (ETH) to safe third-party networks or actively validated providers, providing extra yield alternatives. Nevertheless, the protocol has skilled important outflows in current months, with its complete worth locked (TVL) dropping from a peak of $20 billion in June to roughly $10 billion presently. This decline is partly attributed to stakers exiting their positions after assembly the standards for the token airdrop. The protocol secured a $100 million funding from a16z earlier this yr.
Regardless of the current TVL lower, EigenLayer stays a major participant within the Ethereum ecosystem, with over $12 billion in complete worth locked. The protocol’s revolutionary strategy to restaking and its potential to boost the safety and effectivity of a number of blockchain networks continues to draw curiosity from traders and builders.
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