EigenLayer (EIGEN) has reached a new all-time high, making a psychological milestone for crypto traders and a justification for holders and true believers. A digital asset user spotted the development early today December 7 and shared it on the X platform.
Also, the crypto enthusiast posted an important viewpoint concerning whether projects built on the EigenLayer network could potentially grow in line with an increased value of EIGEN.
Today, $EIGEN hit an all-time high (ATH) and reached $5. Could the tokens from its ecosystem follow suit soon?
For example, $EGP by @Eigenpiexyz_io has a TVL of $1.65B, while its market cap is only $8.66M, and its FDV is $40M (compare that to EIGEN’s $1.05B market cap and $8.31B… pic.twitter.com/VdxGH0qGMc
— 🇻🇳VietnamPenguin🐧 (@VietnamPenguin) December 7, 2024
EIGEN hit the highest price of $5.02 on the night of December 6. The token is currently trading at $4.61, down 7.88% from its new ATH. The uptrend momentum ignited excitement among investors and traders, who are keen to capitalize on the uptrend.
Increased network activity
EIGEN’s trading volume is up 112.70% in the last 24 hours, signaling a recent increase in market activity. Its value rose 22.20% in the last seven days, meaning the crypto is outperforming the global digital asset market which is up 7.30% currently.
The rise of EIGEN is attributed to big investors’ activity in the market. Late last month, a big Ethereum whale sold 181.3 ETH coins and consequently bought 217,348 EIGEN tokens. Although the huge Ether selling caused market tension, the trade swap ignited significant optimism over the EigenLayer ecosystem’s native token.
It appears the current price increase has rejuvenated interest among holders and encouraged users to participate in the network. In early October, EIGEN had around 164,000 active addresses on its network. Typically, as cryptocurrency prices surge, more holders get encouraged to reengage, resulting in the potential rise of active addresses. This is what happened to EIGEN’s case, further cementing the token’s position in the market and bolstering investor confidence.
Airdrop effect
EIGEN’s current gains have also been fueled by its recent token unlock. On October 1, the Eigen Foundation unlocked EIGEN tokens to the public, an event that released the native asset to be traded on multiple crypto exchanges. The initiative also enabled the introduction of several new opportunities for users to actively participate across the EigenLayer ecosystem. The innovation empowered crypto users, stakers, and developers to more fully interact with EIGEN’s security utility.
As a result, the airdrop rollout enabled EIGEN to reach a market capitalization of $435 million in early October. Currently, the token has a market cap of $961.17 million and a fully diluted valuation of $7.84 billion.
Normally, token unlocks cause price decline because of the increase in available supply. However, in EIGEN’s case, the current bullish sentiment indicates that users are buying into the rally, likely intending to hold and capitalize on the price appreciation.
EigenLayer’s success is connected to its ecosystem’s growth. It already has a vibrant ecosystem with a robust restaking economy and many tokens operating on the network.
EIGEN’s-based tokens could rally
EigenLayer has become a dominant player in the DeFi sector, where it offers restaking solutions. It has more than $12.89 billion in assets, making it the third-largest network in DeFi after Lido and AAVE.
It is a prominent network in the blockchain industry, performing well in the digital asset market. With the increase in EIGEN prices, projects built on the EigenLayer network will likely ride this wave to record higher growth.
Fueled by its expansion, EigenLayer’s ecosystem flourishes and attracts a lot of interest from crypto users, traders, and investors. Such growth might influence tokens (like Eigenpie, swETH, pufETH, and many others) to possibly see greater gains due to their unique strengths.
