As a seasoned researcher with years of experience navigating the dynamic landscape of blockchain and cryptocurrencies, I find myself intrigued by the recent launch of EIGEN, the native token of EigenLayer. With my finger on the pulse of decentralized finance (DeFi) and a keen eye for innovative strategies, I’ve followed EigenLayer’s journey since its inception on the Ethereum mainnet earlier this year.
The innovative DeFi protocol, EigenLayer, recognized for its distinctive restaking method, has now made its native token, EIGEN, available for trade. This token was introduced on various centralized platforms such as Binance and MEXC starting from October 1st.
As a crypto investor, I initially found myself holding EIGEN tokens at their starting price of $3.90, with an initial market cap of approximately $6.51 billion. However, the momentum surrounding this project has been nothing short of phenomenal, leading to a remarkable surge in token value. This surge has propelled the price up by over 11%, now sitting at around $4.12. As a result, the fully diluted valuation of EIGEN has also increased significantly, reaching an impressive $7.16 billion.
Currently, EIGEN stands at a market value of approximately $769 million, making it the 88th largest cryptocurrency. In the last 24 hours, its trading volume has reached an impressive $413 million, suggesting robust market engagement as it establishes itself more firmly within the crypto space.
EigenLayer’s token distribution approach is open and fair, releasing 1.67 billion EIGEN tokens into circulation. Among these, 86 million were given out as airdrops to users this year. The airdrop methodology is designed to motivate active participants within the EigenLayer community, encouraging their continued engagement and support for the network’s prosperity.
Instead of being like numerous governance tokens in the cryptocurrency world, EigenLayer’s EIGEN serves as a “Universal Intersubjective Work Token.” As explained in their blog post, this unique idea is designed to tackle issues related to universality, isolation, metering, and compensation. By utilizing social consensus and forking mechanisms, the token will facilitate the execution of digital tasks more efficiently, resulting in a more flexible and adaptable system for decentralized technology.
On October 1, EigenLayer took to X (formerly Twitter) to celebrate the token’s release, stating:
Opening the EIGEN token grants access to a world of innovative opportunities, collaborative security features, and increased network involvement.
Additionally, the platform emphasized that developers should construct Actively Validated Services (AVSs) leveraging EIGEN staking, a crucial function of the token. Token holders serve a vital role in safeguarding these services and expanding the variety of applications within the decentralized finance sector.
Starting from its launch on Ethereum‘s main network on April 9th, EigenLayer has faced some rough patches, with one of the notable setbacks being a decrease in Total Value Locked (TVL) from a peak of $20 billion in June to $10 billion by September.
In August, questions arose regarding the protocol due to accusations that Eigen Labs, responsible for EigenLayer, received substantial token rewards from ventures such as Renzo, AltLayer, and ether.fi. Such claims raised eyebrows about possible ethical lapses in their airdrop policy.
Currently, EigenLayer boasts a TVL of $12.05 billion, according to the data by DeFiLlama.
What’s Next?
According to the recent announcement, EigenLayer is considering implementing a system called “Programmatic Incentives.” This system aims to recognize and compensate individuals who contribute to or operate Actively Validated Services (AVSs) as stakers or operators.
The procedure is getting ready to unveil fresh AVSs featuring “intersubjective slashing”, strengthening its network’s security. According to the DeFi protocol, “the activation of EIGEN surpasses being a mere milestone – it serves as a rallying cry. Come, collaborate with us in developing, expanding, and pioneering the future of decentralized technology”.
Read More
Sorry. No data so far.
2024-10-01 12:53