The EigenLayer protocol has made headlines with the launch of its native token, EIGEN, now trading with a fully diluted valuation of $7.16 billion.
The token debuted on October 1 and is available on major centralized exchanges, including Binance and MEXC. Initially priced at $3.9, EIGEN’s value quickly rose by over 13% to $4.26 at press time.
What Sets EIGEN Apart?
Unlike traditional governance tokens, EIGEN is dubbed the “Universal Intersubjective Work Token.” According to EigenLayer’s team, this token aims to address key challenges such as universality, isolation, metering, and compensation. It operates using social consensus and forking, allowing it to execute various digital tasks across different networks.
Token Airdrop and Market Activity
A total of 1.67 billion EIGEN tokens have been released into circulation. This includes 86 million tokens that were airdropped to early users who interacted with the protocol earlier this year. The airdrop contributed to a surge in market activity, as many stakers who qualified for the airdrop exited their positions following the token distribution.
TVL Drops Amid Staker Exit
Despite the hype around the EIGEN launch, EigenLayer has faced a significant drop in Total Value Locked (TVL). Its TVL plummeted from $20 billion in June to around $10 billion. This decline is primarily due to stakers withdrawing their funds after meeting the airdrop requirements.
How EigenLayer Works
Built on the Ethereum network, EigenLayer allows users to deposit ETH and earn yield by securing additional networks. The protocol’s unique value proposition lies in offering stakers the ability to generate returns beyond traditional Ethereum staking.
Final Thoughts
Despite the recent decline in TVL, EigenLayer’s token launch marks a significant milestone for the protocol. With a fully diluted valuation of $7.16 billion, EIGEN is positioned to play a crucial role in the future of decentralized staking and digital task execution.
