- EigenLayer supply brawl is marring its airdrop success.
- The community wants to enhance the transparency of allocation for all investors.
- EIGEN token price significantly dropped due to dwindling trust in the community.
EigenLayers native token, EIGEN, saw a price retracement of over 20% after being listed on the top crypto exchanges. This week, the EigenLayer has come under scrutiny over its tokenomics structure.
While listing was initially met with enthusiasm, the issue of transparency quickly changed the mood in the market.
Amid the lack of follow-up on buying, the token saw a dip and hovered near the $3.50 level. They seem to have negatively affected the token’s growth capability. This brought confusion among new and existing investors.
EIGEN Token Sees Significant Dip in Key Metrics: What’s Next?
This has decayed with time, and an example is the HMSTR tokens of Hamster Kombat that were recently airdropped.
The same might go for EIGEN, going by current ecosystem musing. Its medium-term outlook is either bullish or bearish, depending on investor mood in the short run. On the other hand, the focus has shifted to the critical support price of $3.
Even worse, within 24 hours, network growth was down by 78%. It indicated that new investors were pulling out of the network.
The decline in interest may be caused directly by the controversy surrounding transparency. This fostered a tendency of hesitation among investors.
After listing, the EIGEN token hit a high of $4.39 in a few hours. However, it displayed a retracement of over 20% within the last 48 hours and saw profit booking at the highs.
At press time, EIGEN was trading at $3.59 with an intraday rise of over 7%. It has a market cap of $670.33 Million and a circulating supply of 186.58 Million.
The Movement Toward Increased Transparency
EigenLayer was making headlines before the launch of its native token known as EIGEN. Nevertheless, once the listing became official, the token was back in the limelight for quite a different cause.
The token was criticized because the network’s Eigen Labs developers did not disclose how they were staking it.
At the moment, over 130 million EIGEN tokens have been staked into the EigenLayer. At first, the stakes were viewed as part of the claimed tokens. Apparently, 70 million of these tokens are owned by this small group of early investors.
EigenLayer investor TardFiWhale.eth took to X to explain,
The recent price drop highlighted the rising skepticism around the token, especially following its debut on major exchanges.
In case of a further drop, the altcoin may drop toward $3, followed by $2.60. On the other hand, considering the bullish sentiment, the EIGEN token could rise toward $4 in the coming sessions.
However, the ongoing sentiment remained fragile. Also, investment must be made to track developments closely and Altcoin’s price for future trades.
Disclaimer
In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.