Ethereum-based takeover protocol, EigenLayer, has launched its native token, EIGEN, which is now actively traded on various exchanges.
Unlike other tokens, EIGEN positions itself as a “universal intersubjective work token” that addresses challenges related to “universality, isolation, measurement and compensation”.
EIGEN has a total supply of 1.67 billion tokens, of which approximately 186 million are currently in circulation, and is listed on major exchanges like Binance. The token initially jumped to $4.44 after its trading debut before falling slightly to $3.90 at press time.
At current prices, the token has a fully diluted valuation of $6.5 billion.
EigenLayer is a leading restoration platform that allows users to lock their ETH to ensure security from third-party networks. The platform currently holds over $12 billion in total value locked (TVL), down nearly 50% from its peak of $20 billion earlier this year, based on DeFillama data.
Whale activity
On-chain data shows that large holders, or whales, are selling their EIGEN tokens.
Blockchain platform SpotOnChain revealed that Justin Sun, the founder of TRON, withdrew 5.24 million EIGEN tokens from the EigenLayer liquid takeover protocol using five addresses and transferred them to the HTX exchange.
SpotOnChain also noted that two prominent traders had made significant deposits on Binance. HashKey Capital transferred 496,013 EIGEN (worth $2.05 million), and another wallet, “0x2fe”, possibly linked to trader @GiganticRebirth, deposited 253,947 EIGEN (worth $1.05 million), 06 million dollars).
Typically, transfers to exchanges are considered bearish signals and often indicate an intention to sell. However, while some whales appear to shed their assets, others accumulate them.
Onchain analytics platform Lookonchain reported that two whales purchased a total of 702,324 EIGEN tokens, worth $2.86 million.
EIGEN unlocking
On October 1, the EIGEN Foundation announced that the token was now unlocked. This change allows the token to be traded, transferred, or staked, providing users with more flexibility.
The company said developers can now create actively validated services (AVS) using EIGEN staking. Stakeholders directly contribute to the security of these services, while partners can leverage EigenLayer’s security framework to improve their protocols.
He also highlighted that the unlocking of the token marks an important moment, promoting greater engagement within the ecosystem. It is expected to boost economic growth, improve governance, and facilitate protocol development, thereby strengthening the broader decentralized network.
