EigenLayer, the Ethereum-based restaking protocol, has launched its native token EIGEN. The token is now trading on major exchanges and its debut has sparked significant activity among cryptocurrency whales.
The token is marketed as a "Universal Intersubjective Work Token". It aims to address challenges in universality, isolation, metering, and compensation. EIGEN has a total supply of 1.67 billion tokens.
Currently, about 186 million tokens are in circulation. The token is listed on prominent exchanges, including Binance. EIGEN's price initially surged to $4.44 before settling at $3.90 at press time.
At current prices, EIGEN's fully diluted valuation stands at $6.5 billion. EigenLayer, the platform behind the token, is a major player in the restaking space, it allows users to lock their ETH to provide security for third-party networks.
EigenLayer's total value locked (TVL) currently exceeds $12 billion. This figure represents a nearly 50% decrease from its peak of $20 billion earlier this year.
On-chain data reveals mixed reactions from large token holders, or whales. Some are selling their EIGEN tokens. For example, Justin Sun, founder of TRON, withdrew 5.24 million EIGEN tokens from EigenLayer's liquid restaking protocol. Sun used five addresses to transfer the tokens to the HTX exchange. Two other significant traders made large deposits to Binance. HashKey Capital transferred 496,013 EIGEN, worth $2.05 million.
Another wallet, possibly linked to trader @GiganticRebirth, deposited 253,947 EIGEN, valued at $1.06 million. These transfers to exchanges often signal an intent to sell and are typically viewed as bearish indicators.
However, not all whales are selling. Onchain analysis platform Lookonchain reported that two whales purchased a total of 702,324 EIGEN tokens valued at $2.86 million.
The EIGEN Foundation announced that the token is now unlocked. Users can trade, transfer, or stake their tokens. Developers can create Actively Validated Services (AVSs) using EIGEN staking.
The foundation stated that this unlock marks a significant moment for the ecosystem. It is expected to drive economic growth and improve governance. The foundation also anticipates that it will facilitate protocol development.