Originally published on: September 30, 2024
As the highly anticipated unlock of EigenLayer’s EIGEN token approaches, futures markets are indicating a bullish start for the native token of the Ethereum restaking protocol. Trading data from decentralized perpetual exchanges has hinted at a promising debut for EIGEN once it becomes transferable.
Initially launched in May, EigenLayer’s native token has been nontransferable. However, derivative markets, specifically EIGEN-linked perpetual futures, are pointing towards a spot price of approximately $4 per token. Data from exchanges Aevo and Hyperliquid have provided insights into the potential value of the token post-unlock.
According to Aylo, the pseudonymous founder of Alpha Please, there is a possibility of airdrop farmers selling their tokens initially, which could temporarily weigh down the price. However, there is expected to be significant interest in acquiring EIGEN at lower prices throughout the cycle.
The token is set to unlock at 5:00 am UTC on Oct. 1 and will soon be available for trading on major centralized exchanges such as Binance and Bitfinex. With a total supply of 1.67 billion tokens, EIGEN’s fully diluted value (FDV) is projected to surpass $6.7 billion, with approximately 200 million tokens already in circulation.
The price of EIGEN perpetual futures on Aevo and Hyperliquid has been steadily increasing since September, almost doubling from its previous lows. While the 24-hour trading volume on these exchanges is around $1 million, it may not completely reflect the dynamic market conditions accurately.
Informal over-the-counter (OTC) trades have also shown a positive trend for EIGEN, with prices reportedly rising from $2 in August to $3.50 as of late September. Early trades post-airdrop valued the token as high as $10, as indicated by EigenLayer’s community forums.
EigenLayer’s total value locked (TVL) stands at nearly $12 billion, showcasing the significant growth and interest in the protocol. Restakers who deposit EIGEN tokens as collateral are set to receive rewards from various protocols, including Ether and EIGEN rewards.
EigenLayer’s affiliated actively validated services (AVS), such as EigenDA, have already started rewarding restakers, with more AVS like Arpa Network expected to follow suit. The expanding ecosystem of AVS building on EigenLayer is a testament to the protocol’s growing popularity and utility in the decentralized finance space.
In conclusion, EigenLayer’s EIGEN token unlock is generating substantial excitement in the crypto community, with futures markets predicting a promising debut. As more protocols integrate EigenLayer’s restaking mechanisms, tokenholders are likely to benefit from the rewards and value accrual opportunities offered by the protocol.
