EIGEN Trading: First Week Overview

EIGEN trading launched on Sept. 30, with an estimated initial market capitalization of $700 million. Below, we analyze the initial price movements, changes in total value locked (TVL), and trading activity on major exchanges.

Price Movements: A Volatile Start to EIGEN Trading

EIGEN trading started at $4 per token and quickly reached its all-time high (ATH) of $4.47 on Oct. 1. However, this momentum was short-lived, as the token began a steady decline over the following days. By Oct. 6, the price of EIGEN had dropped to its lowest recorded level of $3.06.

At the time of writing, EIGEN is trading at $3.26, indicating continued price fluctuations and a cautious investor approach.

EIGEN Trading: The First Week of Trading. Source: CoinGecko

TVL of EigenLayer Falls 11% in a Week

The EigenLayer protocol, which powers EIGEN, has attracted significant attention due to its dominant position in the restaking category. According to DeFiLlama, EigenLayer’s Total Value Locked currently stands at $10.76 billion, making it the largest protocol in its niche.

However, this represents an 11% decline in TVL over the past week, indicating a shift in sentiment or the repositioning of assets by investors. Despite this, EigenLayer remains the third-largest protocol overall by TVL, trailing behind Lido (LDO) and Aave (AAVE), which hold $23.8 billion and $11.9 billion in TVL, respectively.

Ranking of Restaking Protocols by TVL. Source: DeFiLlama

$172 Million Trading Volume on Binance

Binance, the largest centralized exchange (CEX) for EIGEN trading, has been a major player in facilitating liquidity for the token.

According to Binance’s data, EIGEN’s trading volume on the platform reached $172.5 million, accounting for 23.15% of its overall volume.

However, EIGEN has been outpaced by other tokens on Binance, such as Litecoin (LTC) and Tron (TRX), which saw $214.06 million and $182.61 million in trading volume, respectively. In terms of overall trading volume on Binance, EIGEN ranked 19th, indicating that while the token has garnered some interest, it is yet to achieve a top-tier position.

It can be assumed that EIGEN trading has not generated as much reaction in the crypto community as expected. Investors are also waiting for a period when volatility will pass and there will be more data for analytics.

EIGEN Trading on Binance. Source: Official Website of the Exchange