- EigenLayer lifted transfer restrictions on its EIGEN token, now tradable on various exchanges with a $7.1 billion fully diluted valuation.
- EIGEN token's circulating supply is approximately 200 million out of 1.67 billion, trading at around $4.28 after being distributed via "stakedrops."
- EigenLayer's total value locked (TVL) dropped from $20 billion to $12 billion, while the platform's security model supports third-party networks via ETH staking.
EigenLayer officially removed transfer restrictions on its native EIGEN token at midnight EST, sparking a wave of transactions. As a result, token holders have begun moving their assets, including those received through airdrops. The EIGEN token is now available for trading on various exchanges, providing greater liquidity for holders.
EIGEN Token Circulation and Valuation
Notably, the removal of transfer restrictions marks a significant shift for the EIGEN token, which was distributed during EigenLayer’s two "stakedrops." Out of the initial supply of 1.67 billion tokens, the total circulating supply is expected to be approximately 200 million, according to Kairos Research. At its current trading price of around $4.28, the EIGEN token gives EigenLayer a fully diluted valuation of $7.1 billion, based on data from CoinGecko.
Furthermore, this development comes after months of anticipation, as EigenLayer’s community and stakeholders had been waiting for this moment to unlock the potential of their assets. With the token now freely tradable, the market is responding with a surge in activity, indicating that interest in the platform remains strong despite its recent fluctuations in total value locked (TVL).
Impact on the Crypto Security Ecosystem
Additionally, EigenLayer’s EIGEN token plays a vital role in supporting the platform’s innovative crypto-economic security model, known as inter-subjective forking. This model allows users to stake Ether (ETH) to secure third-party networks or services.
Besides, the platform had peaked with over $20 billion in total value locked (TVL) earlier this year, but that figure has since decreased to just over $12 billion. However, the removal of transfer restrictions on the EIGEN token could stimulate renewed interest in staking activities on EigenLayer.
Moreover, the security model designed by EigenLayer has the potential to influence broader trends in decentralized finance (DeFi), especially with increased liquidity now available for the EIGEN token. The token's free trading could encourage more users to participate in staking, further reinforcing the platform’s security infrastructure. Consequently, as trading volumes increase, the token’s price may experience shifts, potentially impacting the valuation of EigenLayer itself.
Hence, as EIGEN tokens begin circulating more freely, stakeholders are closely watching how the increased liquidity and trading activity will affect the broader DeFi space.
EigenLayer’s ability to attract new users and projects will be key to its future success. The platform’s capacity to manage its TVL and secure third-party networks through ETH staking remains essential to its continued growth.
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