EigenCloud (EIGEN) ranked among the market’s top gainers after surging 14%, as investor interest in the token continued to grow.
The rally seems supported by the entry of new capital into the ecosystem. However, derivatives data suggests that the conviction behind the move remains mixed.
Why is capital flowing to EigenCloud?
On-chain capital flows have helped support EIGEN’s recent price performance.
Total Value Locked (TVL), which tracks the capital committed to protocols on EigenCloud, has increased sharply over the past week.
DeFiLlama data showed that TVL increased by $291 million between June 7 and 14, reaching $4.67 billion.
This increase suggests growing investor participation and stronger capital commitment across the network.
Interestingly, this increase occurred even as the number of EIGEN holders declined over the same period, falling to approximately 223,000 at the time of publication.
This divergence suggests that larger pools of capital have entered the ecosystem despite a reduction in the number of holders.
Are traders still betting on more upside?
Derivatives data also reflects growing interest in EIGEN.
Perpetual market data showed a positive net flow of approximately $753,000, indicating that more capital entered the market than exited during the observed period. Retail traders on major exchanges appeared increasingly optimistic.
EIGEN’s long/short ratio reached 1.29 on OKX and 1.53 on Binance. Readings above 1 indicate that long positions outweighed short positions.
At the same time, the total perpetual trading volume jumped to around $69 million. The move aligns with growing speculative activity as traders position themselves for further upside.
Sustained buying activity alongside rising prices and open interest could help support the current trend.
Is the upward momentum strong enough?
Despite everything, one indicator suggests that traders remain cautious.
The funding rate remained positive at 0.0024%, indicating that long positions continued to pay short positions to maintain exposure. The reading showed that bullish positioning remained dominant at press time.
The margin, however, remains narrow.
With the funding rate only slightly positive, sentiment could change quickly if buying demand weakens.
This left traders wondering whether capital inflows and demand for derivatives would remain strong enough to support EIGEN’s latest rally.
Final Summary
- EigenCloud’s total value locked increased by $291 million in one week, reaching $4.67 billion.
- Positive net flow suggests that new capital continues to enter the EIGEN market.
