EigenLayer’s crypto token EIGEN was launched just a few days ago, and news about the project’s development is already circulating.
EIGEN is the native token of the EigenLayer Restaking Protocol.
Launch of EIGEN token (Eigenlayer) on the cryptocurrency market: Latest news
Token EIGEN was launched on the crypto market last week on October 1, 2024.
Despite the current price decline, the market capitalization has already reached $600 million, ranking around 100th overall, ahead of companies such as Pendle and The Sandbox.
However, it is important to remember that the so-called market capitalization is a purely theoretical number obtained simply by multiplying the number of existing tokens in circulation by the market price of a single token. . Significant changes can occur over time, especially for tokens that are new to the market.
EIGEN started at around $3.9 and rose to $4.5 a few hours after its bull market debut.
However, the next day, it fell below $3.6 and continued to fall for another four days, reaching $3 the day before yesterday.
It has rebounded modestly over the past two days, moving above $3.4, which is still lower than its initial level.
However, similar movements are quite normal during the first few days of trading a new token on the crypto market.
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.
It allows Ethereum stakers to reuse their staked ETH across various decentralized services within the EigenLayer ecosystem.
The mission of this project is to address security fragmentation in decentralized ecosystems, given that each new service on Ethereum typically needs to build its own trust network, and as a result, the overall This creates an environment where security is decentralized.
EigenLayer, on the other hand, aims to access the collective security provided by Ethereum stakers, not only to reduce the capital requirements of individual stakers, but also to improve the overall trust and security of services that leverage this shared resource. That’s what I’m aiming for.
Thanks to this new protocol, stakers can choose to delegate their ETH to an operator or become an operator and manage the validation service directly. Delegation is based on a mutual opt-in mechanism, ensuring that both parties agree to the terms of participation.
Once delegated, stakeholders can select which Actively Validated Services (AVS) they wish to support and contribute to the security and functionality of the network.
The hottest crypto news about EIGEN token (Eigenlayer)
In a recent interview, the project’s founder Sreeram Kannan revealed some interesting news about its evolution.
First off, EigenLayer said it is currently prioritizing integration with Web3 applications and is initially targeting apps that work in crypto-native spaces such as DeFi and gaming.
However, Kannan added that once the project grows, it will also start targeting a broader consumer market.
Meanwhile, EigenLayer’s restaking guarantees have already reached $11 billion, making it the largest restaking protocol on Ethereum.
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According to Kannan, EigenLayer’s AVS EigenDA aims to be a beachhead of sorts for integrating consumer apps into the broader AigenLayer ecosystem, and further expansion of the project should begin right there with AigenDA.
EigenDA specializes in data availability, one of Web3’s most competitive and fastest growing market segments.
Additionally, while this is clearly not EigenLayer’s only AVS in existence, it is already designed to handle large throughputs and aims to attract stakers with a programmatic incentive program. In particular, EigenDA will reward re-stakers with EIGEN token emissions equivalent to approximately 4% of the total token supply.
Kannan explained that stakers receive program rewards based on the number of AVSs they serve, and AVSs pay fees to stakers and operators.
According to the founders of EigenLayer, staking EIGEN will replace multisig wallets in the future as the primary tool for securing the Web3 protocol and smart contracts.
