The crypto token EIGEN of EigenLayer was launched just a few days ago, and there are already news regarding the development of the project.
EIGEN is the native token of the EigenLayer restaking protocol.
The launch of the EIGEN token (Eigenlayer) on crypto markets: the latest news
The token EIGEN was launched on the crypto markets on October 1, 2024, which was last week.
Despite its price currently being in decline, it has already reached a market capitalization of 600 million dollars, which places it around the hundredth overall position, ahead of examples like Pendle and The Sandbox.
It is important to remember, however, that the so-called market capitalization is a purely theoretical number that is simply obtained by multiplying the number of existing tokens in circulation by the market price of the single token. Especially for tokens that have just landed on the market, it can undergo significant changes over time.
The initial price of EIGEN was about $3.9, rising to $4.5 a few hours after the bull market debut.
However, the next day the price had fallen below $3.6, so much so that it continued the decline for another four days until it reached $3 the day before yesterday.
In the last two days, it has recorded a small rebound, which has brought it back above $3.4, a level still lower than the initial one.
Similar movements, however, are absolutely normal in the first days of trading on the crypto market for a new token.
The EigenLayer protocol
EigenLayer is a protocol that leverages the Ethereum blockchain for restaking. Restaking involves taking a token that has already been staked and using it to secure other protocols.
Allows Ethereum stakers to reuse their staked ETH on various decentralized services within the EigenLayer ecosystem.
The mission of the project is to address the fragmentation of security in the decentralized ecosystem, given that generally each new service on Ethereum has to build its own trust network, thus creating an environment where overall security is dispersed.
EigenLayer, on the other hand, aims to access the collective security provided by Ethereum stakers, to reduce the capital requirements for individual stakers, but also to improve the overall trust and security for the services that draw on this shared resource.
Thanks to this new protocol, stakers can delegate their ETH to operators, or choose to directly manage validation services by becoming operators. The delegation is based on a mutual opt-in mechanism, ensuring that both parties agree to the terms of participation.
Once the delegation is made, the stakers can select which Actively Validated Services (AVS) they wish to support, contributing to the security and functionality of the network.
The hottest crypto news on the EIGEN token (Eigenlayer)
During a recent interview, the founder of the project, Sreeram Kannan, revealed some interesting news about its evolution.
First of all, it stated that EigenLayer is now prioritizing integration with Web3 applications, initially targeting apps operating in crypto-native sectors, such as DeFi and gaming.
However, Kannan also added that, when the project has grown, they will also start targeting broader consumer markets.
In the meantime, EigenLayer has already reached 11 billion dollars in restaking guarantees, thus becoming the largest restaking protocol on Ethereum.
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EigenDA
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According to Kannan, EigenLayer’s AVS EigenDA aims to become a sort of bridgehead for the integration of consumer apps into the broader EigenLayer ecosystem, and it is precisely from EigenDA that the further expansion of the project should start.
EigenDA specializes in data availability, one of the most competitive and fastest-growing market segments in Web3.
Furthermore, although it is obviously not the only AVS of EigenLayer in existence, it is already designed to handle large processing volumes and aims to attract restakers with a programmatic incentive program. In particular, EigenDA will reward the restakers with EIGEN token emissions equal to about 4% of the total token supply.
Kannan explained that the stakers will receive programmatic rewards based on the number of AVS they will serve, and the AVS will pay fees to the stakers and the operators.
According to the founder of EigenLayer, staking EIGEN will in the future replace multisig wallets as the dominant tool to protect Web3 protocols and smart contracts.
