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The crypto community is buzzing with excitement as the EigenLayer Foundation announced the unlocking of its $EIGEN token earlier today. This strategic move aims to empower developers, stakers, and ecosystem partners, further cementing EigenLayer’s position within the Ethereum ecosystem. With its recent listing on major exchanges, including Binance Holdings, the EIGEN token has quickly gained traction, amassing over 229,500 on-chain holders—a promising start for this innovative project.
A Strong Market Entry
The unlocking of the $EIGEN token has resulted in deep liquidity exceeding $6.55 million, opening trading with a fully diluted valuation of approximately $7 billion. With a daily average trading volume of about $430 million, it’s clear that market interest in EIGEN is substantial. However, the price has faced volatility, experiencing a drop of around 25% in the past 24 hours, trading at approximately $4.29 during the mid-London session on Tuesday, October 1.
Sell Pressure Increases – Here’s Why
The Ethereum-based restaking project has encountered increased selling pressure since its market debut. Analysis from GeckoTerminal reveals a concerning imbalance in market activity: the EIGEN/WETH trading pair has recorded over 4,300 sell orders, compared to only 1,200 buy orders. This disparity has raised alarms among investors and analysts alike.
Adding to the selling pressure, notable figures within the crypto space have been active. According to Spot On Chain, Justin Sun, founder of Tron (TRX), played a significant role in recent market movements. Reports indicate that five addresses linked to Sun received a staggering 5.24 million EIGEN tokens, valued at over $21 million, within the last 24 hours. These tokens were promptly deposited into the HTX exchange, intensifying market speculation about Sun’s intentions.
Institutional Interest in EigenLayer
Despite the prevailing sell pressure, EigenLayer has captured considerable attention from institutional investors, particularly those eager to engage in Ethereum’s staking program. Leading market makers Flow Traders and Auros Global each received substantial allocations of EIGEN tokens—approximately 3.454 million and 1.6 million tokens, respectively. Moreover, Galaxy Digital acquired 1.52 million tokens, while two Ethereum whales purchased a combined total of 702,324 $EIGEN tokens worth about $2.86 million in the past four hours, as reported by on-chain data from Lookonchain.
This institutional backing reflects confidence in EigenLayer’s long-term potential, suggesting that while volatility may characterize the initial trading phase, substantial support exists among serious market players.
As EigenLayer navigates this challenging landscape, the excitement surrounding the $EIGEN token is palpable. With significant backing from both retail and institutional investors, the foundation is set for continued growth and innovation. However, the current market dynamics highlight the need for caution, as increased sell pressure poses challenges for the project’s immediate future. Investors will be keen to watch how EigenLayer manages these dynamics in the coming days, shaping its trajectory in the ever-evolving crypto space.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
