EigenLayer EIGEN token now tradable at end of restrictions, debuts with $7B FDV

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EigenLayer, the Ethereum-based reset protocol, has officially removed transfer restrictions for its native token EIGEN, allowing holders to freely move and trade their assets. The token became transferable at midnight EST and is now trading on various cryptocurrency exchanges.

EIGEN debuted at $3.90, with a fully diluted valuation of $6.51 billion. At the time of writing, the token’s price is up more than 13% to $4.26, giving EigenLayer a fully diluted valuation of $7.1 billion, according to data from CoinGecko.

The token distribution follows EigenLayer’s two stakes from an initial supply of 1.67 billion tokens. About 86 million tokens have been sent to users who have previously interacted with the protocol. Kairos Research estimates that the current supply in circulation is around 200 million tokens, despite the protocol facing conflict of interest criticism.

Several major cryptocurrency exchanges, including Binance and MEXC, are set to list EIGEN for trading on October 1 at 05:00 UTC. This wider exchange availability is expected to increase liquidity and accessibility for the token.

Unlike traditional governance tokens, EIGEN is designed as a “Universal Intersubjective Work Token”. According to EigenLayer’s blog post, the token aims to address the challenges of “universality, isolation, metering and compensation” while leveraging social consensus and forking mechanisms to perform various digital tasks securely.

The EIGEN token supports a crypto-economic security system known as inter-subject forking. This innovative approach is intended to increase the resilience and adaptability of the protocol in the face of potential disputes or governance challenges.

The EigenLayer platform allows users to stake Ether (ETH) to secure third-party networks or actively validated services, providing additional opportunities for returns. However, the protocol has seen significant outflows in recent months, with its Total Locked Value (TVL) falling from a peak of $20 billion in June to around $10 billion today. This decrease is partly attributed to players exiting their positions after meeting the criteria for the chip release. The protocol secured a $100 million investment from a16z earlier this year.

Despite the recent drop in TVL, EigenLayer remains a major player in the Ethereum ecosystem with over $12 billion in total locked-in value. The innovative approach of the rollback protocol and its potential to enhance the security and efficiency of multiple blockchain networks continue to attract the interest of investors and developers.

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