The highly anticipated EIGEN token unlocking is finally here, with the EigenLayer protocol set to go live on major exchanges such as Bitfinex and Binance. This development comes on the heels of EigenLayer’s impressive growth, with its total value locked (TVL) exceeding $20 billion after raising $170 million in venture funding.
The EIGEN token, which is the native cryptocurrency of the EigenLayer protocol, is launching with an initial total supply of approximately 1.67 billion tokens. However, its supply will increase over time, similar to Ethereum’s dynamic supply model. The token was distributed to ecosystem partners and the community through two major airdrops earlier this year.
Currently, EIGEN futures contracts are trading at $4.00 on the Aevo platform, resulting in an estimated fully diluted valuation of over $6.7 billion. This valuation is a testament to the growing interest in the EigenLayer protocol and its potential to enhance Ethereum’s security.
The EigenLayer platform is designed to improve Ethereum’s security by enabling developers to create new services and products that utilize the security of Ethereum’s staked assets, while offering the EIGEN token to address specific off-chain faults without compromising the Ethereum network’s integrity.
Henry Little, Head of Tokens at Bitfinex, expressed his enthusiasm for the launch of EigenLayer’s new staking capability, stating that it aligns perfectly with Bitfinex’s commitment to supporting transformative projects in the digital asset space.
However, the EIGEN token airdrop in May 2024 was not without controversy. The decentralized Ethereum app, which enables additional profit through re-staking tokens, excluded key investors such as those from the US due to restrictive airdrop requirements, despite initially accepting their deposits. This issue also affected users accessing the platform through third-party apps.
In May, EigenLayer made headlines again, raising eyebrows over concerns about conflicts of interest. Ethereum Foundation researcher Justin Drake announced that he had joined EigenLayer in an advisory role with a “significant EIGEN token incentive.” This move sparked debate about the potential for conflicts of interest and the need for greater transparency in the industry.
As the EIGEN token begins trading on major exchanges, investors are eagerly watching to see how it will perform. With its impressive valuation and growing interest in the EigenLayer protocol, the EIGEN token is certainly one to watch in the coming weeks and months.
Disclaimer: Readers are encouraged to conduct their own research and consult with a financial professional before making any investment decisions based on this content.
It’s worth noting that the author of this article has a personal connection to the EigenFoundation, having recently become an advisor to the organization. This advisorship comes with a significant EIGEN token incentive, which may be worth more than the combined value of all other assets owned by the author. This disclosure is made in the interest of transparency and to ensure that readers are aware of any potential biases or conflicts of interest.
Disclaimer
Readers are encouraged to conduct their own research and consult with a financial professional before making any investment decisions based on this content.
