Binance has listed EIGEN crypto as the native token of EigenLayer. However, Eigen price is down at press time but most are bullish.
Airdrops, stakedrops, you name them; it means freebies for active protocol users. In this case, EigenLayer fans have been receiving EIGEN, the native token of the liquidity restaking platform, for their engagement.
Through EigenLayer, it is possible for other platforms to be secured from staked ETH, locked in the Ethereum mainnet.
EIGEN Lists on Binance, Bybit Announces Support
Talk of an innovation that further expands the use case for the otherwise locked ETH earning what some analysts consider near risk-free staking rewards from Ethereum.
Yesterday, Binance, the world’s largest crypto exchange by trading volume and client count, announced its support for EIGEN.
Trading of EIGEN began at exactly 5 AM UTC on October 1.
The excitement was undoubtedly high.
However, as it turns out, more holders are eager to offload EIGEN.
Moments after listing, Justin Sun of Tron moved 5.24 million EIGEN worth over $22 million to Huobi.
It remains to be seen whether Sun liquidated the stash, heaping even more selling pressure.
For now, moments after listing on Binance, EIGEN is down 5%, but momentum appears to be building up in lower time frames.
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Will EigenLayer Race Higher?
Several factors could be at play, possibly propping up valuation.
At nearly $4 each, EIGEN may first benefit from the vast Binance user base and high trading volume.
Binance has over 200 million users worldwide, all of whom can now buy and sell the token.
The good news is that Binance is not the only exchange keen on listing EIGEN.
The token has been supported by Bybit and Coinbase, in an early announcement, plans to eventually list the token.
Second, EigenLayer is one of Ethereum’s largest protocols.
According to DeFiLlama, the platform manages over $12 billion of assets on Ethereum.
(Source)
As big as EigenLayer is, its value proposition is drawing investors.
What the platform brings to the table differentiates it from other platforms.
At the top of the list, EigenLayer wants to address challenges facing decentralized systems by making them more secure right from the start.
The unlocking of tokens on September 30, EigenLayer said in a post on X, will allow developers to build “Actively Validated Services” using EIGEN staking.
Accordingly, more analysts are bullish on EIGEN, expecting growth in the long term.
While EIGEN could suffer because of the expected deluge of tokens primarily from retail holders, Coingecko shows that only 186.5 million EIGEN is in circulation–from stakedrops.
(Source)
This circulating supply is lower than the total supply of 1.68 billion, a net positive for EIGEN bulls in the coming days.
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
