EIGEN, EigenLayer’s native token, spiked by 20% on Wednesday, crossing the $4 benchmark. It was the only top altcoin to be trading higher in a market marred by heavy selloffs. Bitcoin, still the most prominent cryptocurrency, failed to maintain its level and was at around $62,000.
However, when it comes to digital assets under consideration, that is, in broad terms, there is a slight upturn. The cumulative market cap is touching $2.17 trillion while the 24-hour trade volume slashed by 13% to $68 billion.
Justin Sun Cashes in $14 Million from Token Unlock Event
Prominent token unlocking events greatly influenced EIGEN’S recent price increase. One of the big winners of this event was crypto billionaire Justin Sun. He got 3.62 million EIGEN tokens worth over $14 million.
According to the data obtained from SpotOnChain, Sun transferred all of these tokens to Binance at $3.89 each. It is not the first large EIGEN deal made by Sun. Before that, on October 1, he sold 5.2 million EIGEN tokens (approximately $21.5 million) to the HTX exchange.
This is seen from Sun’s continued involvement with EigenLayer after the company got listed. In total, he has so far claimed and deposited over 8.8 million EIGEN tokens ($35,610,400) at Binance with an average token price of $4.02.
EIGEN Trading Volume Spikes Amid Price Surge
EIGEN’s trading volume experienced an uptick from October 7th, to October 10th. This volume stood $426 million on Oct 7th. Dramatically this figure rose to around $1.13 billion by October 10th.
This is an immense 165 percent jump in trading volume across the three days. The increase in volume here is a clear indicator of increased investor interest.
It is a likely result of recent developments and market trends. The token’s price rose by 20% in the last seven days. Thursday’s 7% drop cut the weekly gains to just 7%.%. As of writing, EIGEN has an average price of $3.73.
It shouldn’t come as a surprise that EigenLayer has had a rough road to haul it. In an earlier such case, the platform had to deal with concerns around an unauthorized sale of $5.5 million worth of EIGEN tokens.
The sale was tied up in a compromised email thread. The attacker had hijacked 1.67 million tokens which were then quickly swapped for stablecoins.
Centralized exchanges and law enforcement are working with EigenLayer towards the recovery of stolen assets and a portion of the funds has been frozen.
EigenLayer Targets Web3 and Gaming Markets
Following the October 1 token unlock, EigenLayer is shifting its focus to consumer Web3 applications, especially in the DeFi and gaming space. Leveraging $11 billion worth of restaked collateral, the platform is looking to secure a bigger share of the market and become a dominant name in the Web3 world.
In a recent interview, Sreeram Kannan founder of EigenLayer revealed how the protocol has progressed. EigenLayer’s first focus will be on high throughput applications such as DeFi and gaming but intends to eventually broaden to other consumer markets, EigenLayer he said.
He also noted that EigenLayer’s native restaking protocol EigenDA will act as a gateway for consumer apps to the platform’s wider ecosystem. As a service focused on data availability, EigenDA is expected to become one of the corners of the app attracting additional users and stakers.
With their programmatic incentives, which involve cryptocurrency stakers who earn around 4% of the token’s total supply EIGEN emissions, they are aiming to spur participation and expansion in the EigenLayer ecosystem.
EigenLayer Eyes a Potential 34% Surge as Bulls Target Breakout Above Key $4.2 Resistance
The EIGEN/USD chart displays key resistance levels and potential upside targets. The current price is at $3.73, with a significant resistance zone at $4.2, which has previously acted as resistance.
A successful breakout above this level could pave the way for a rise towards the next psychological target of $5.00, representing a potential surge of 34% from the $3.73 level. If the price fails to break above $4.20, it may struggle to establish a bullish momentum.
The Money Flow Index (MFI) is showing a reading of 55.20. This indicates a slight increase in buying pressure and suggests that the bulls are gaining control.
The positioning of this indicator above the 50 level is supportive of a bullish thesis. If the trend holds, is a strong indicator for directionally biased upwards.
Traders should monitor the price’s behavior at the $3.60 support closely, as a failure to maintain momentum could result in a pullback, whereas a breakout would confirm the bullish outlook.
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Source: https://www.thecoinrepublic.com/2024/10/11/eigenlayer-whats-trending-this-week/