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Altcoin

EIGEN Token Launches with $7.16 Billion Valuation

by Ouess
written by Ouess

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.

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Altcoin

Ethena’s ENA Token Surges 45% Amid New Product Launches

by Ouess
written by Ouess

Ethena’s native token, ENA, has seen a significant surge of over 45% this week, driven by the release of several new products. The protocol, which focuses on creating a crypto-native alternative to traditional banking with its synthetic dollar, USDe, has gained considerable attention in the crypto space.

Ethena’s Innovative Solutions: USDe and Internet Bond

Ethena aims to provide a stable, decentralized solution for money through its synthetic dollar, USDe, which operates independently of traditional financial systems. Along with USDe, the project offers a dollar-denominated savings product known as the “Internet Bond.

At the time of writing, ENA is trading at $0.359, up from $0.248 just a week ago, marking a 45% gain. In the last 24 hours, ENA has seen a 14% rise, pushing it to the 115th position by market cap.

Partnership with EigenLayer Boosts ENA

Earlier this week, Ethena announced its partnership with the Ethereum restaking protocol EigenLayer (EIGEN). This collaboration allows USDe to be used as security in EigenLayer’s shared security platform, expanding the range of collateral options for Actively Validated Services (AVS). Previously, only ETH-based assets could be used as collateral for staking, but now, the inclusion of dollar-denominated assets like USDe opens up new possibilities for less volatile collateral options.

New Stablecoin UStb Backed by BlackRock

On Thursday, Ethena introduced UStb, a new stablecoin fully backed by BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL). This marks BlackRock’s first tokenized fund, investing in cash, U.S. Treasury bills, and repurchase agreements. UStb offers users a stablecoin with a different risk profile compared to USDe, providing more options for investors and exchange partners.

Final Thoughts

Ethena’s latest product launches and partnerships have driven substantial growth in ENA’s value. With its synthetic dollar protocol and new stablecoin backed by BlackRock, Ethena is positioning itself as a major player in the decentralized finance space.

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DeFi

EigenLayer to Distribute 86 Million Tokens in Season 2 Stakedrop

by Ouess
written by Ouess

EigenLayer is set to distribute 86 million EIGEN tokens as part of its Season 2 stakedrop, according to a recent blog post.

The stakedrop will reward users who have interacted with the platform, including stakers, node operators, and ecosystem partners. The token distribution begins on September 17 and represents about 5% of the platform’s total supply of 1.67 billion tokens.

Breakdown of Token Distribution

In this stakedrop, 70 million tokens will go to stakers and node operators. Meanwhile, 10 million tokens are reserved for ecosystem partners, and the remaining 6 million will be allocated to the EigenLayer community. This marks the second round of rewards distributed through the platform.

EigenLayer’s Growth and TVL Decline

EigenLayer initially gained traction after announcing its token launch in April, attracting around $15.7 billion in deposits. However, the total value locked (TVL) on the platform has since dropped to $11.3 billion, according to DefiLlama data.

EigenLayer is a restaking protocol built on Ethereum, allowing users to stake ETH and secure additional networks or protocols for extra yield. The protocol has faced challenges with a declining TVL, a trend seen across multiple restaking platforms.

Market Pressures Impact TVL

Several factors have contributed to the drop in TVL across restaking protocols like EigenLayer. For instance, Renzo’s TVL fell by 22% to $1 billion, and Karak’s dropped by 14.6% to $688 million. The decline can be attributed to falling asset prices, with ETH currently trading at $2,388, down from its July peak of $3,536.

Additionally, many users have withdrawn assets following the conclusion of various airdrop campaigns, a common strategy among crypto investors earlier this year. This “airdrop farming” involved staking assets to increase their potential share of a token airdrop.

Conclusion

EigenLayer’s Season 2 stakedrop comes at a time when restaking protocols face declining asset prices and reduced TVL. The token distribution aims to reward its users and boost participation in the platform, while the broader market adjusts to changing conditions.

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DeFi

EigenLayer Surges as Fifth Largest DeFi Protocol with $4 Billion Influx

by Ouess
written by Ouess

EigenLayer, a prominent liquid restaking platform, has surged to become the fifth-largest decentralized finance (DeFi) protocol, witnessing a significant influx of over $4 billion following the elimination of the staking cap.

The capital locked in restaking protocols has soared to an astounding $10 billion, a remarkable increase from a mere $350 million recorded in December.

With the recent injection of $4 billion, EigenLayer has solidified its position as the fifth-largest DeFi platform. The decision to abolish the staking cap, announced on February 5th, propelled a surge in inflows, aiming to stimulate organic demand, as highlighted in EigenLayer’s blog post. This move triggered a swift and substantial response, with over $1 million worth of ETH pouring into EigenLayer within hours of lifting the staking cap, catapulting its total value locked (TVL) to an impressive $3 billion.

The restaking period concluded on February 10th, witnessing a further $600 million surge in TVL attributed to escalating asset prices.

EigenLayer presently reports a TVL of $6.6 billion, marking a staggering surge of $6.5 billion over the past few months. Notably, data from DeFiLlama reveals that the assets currently locked on the protocol include 469,870 wrapped ether (WETH) tokens valued at $1.9 billion, along with an additional $2.7 billion worth of staked ETH (stETH).

EigenLayer supports various liquid staking tokens, including Lido-staked ETH (stETH) and Rocket Pool ETH (RETH), wherein platforms such as Lido and Rocket Pool stake ETH on behalf of users, issuing liquid staking tokens representing the stake and accruing interest.

Originally launched on the Ethereum mainnet in June 2023, EigenLayer initially supported liquid staking tokens from three projects: Lido, Rocket Pool, and Coinbase. Subsequently, EigenLayer expanded its offerings to include tokens from Stakewise, Mantle, Frax, Ankr, and Binance.

This surge in EigenLayer’s TVL reflects a broader trend across the DeFi sector, with the total capital locked in DeFi protocols reaching a staggering $71 billion. Restaking mechanisms have played a pivotal role in this surge, with liquid restaking platforms witnessing a substantial increase in capital, elevating TVL across the sector to $10 billion, up from just $350 million in December.

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