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Qadir AK
Qadir AK
Author
Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.
- Oct 01, 2024 10:45 UTC
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EIGEN Token Faces Rough Market Debut: Did Justin Sun’s Dump Cause a Sell-Off?
The EigenLayer Foundation has unlocked its EIGEN token, leading to a significant increase in on-chain holders and trading volume.
EIGEN token experienced a 25% drop in price within 24 hours of its market debut, likely due to selling pressure from major investors like Justin Sun.
On-chain data shows a significant imbalance between sell and buy orders, suggesting that the market is currently dominated by sellers.
The crypto community is buzzing with excitement! Earlier today, the EigenLayer Foundation announced the unlocking of its $EIGEN token. This move aims to empower developers, stakers, and ecosystem partners. After being listed on major exchanges, including Binance Holdings, the EIGEN token has gained over 229,500 on-chain holders, marking a strong start for the project.
Due to the unlocking, the altcoin has deep liquidity exceeding $6.55 million and opened trading with a fully diluted valuation of approximately $7 billion, along with a daily average trading volume of about $430 million.
However, the market has experienced volatility, with the EIGEN price dropping around 25% in the past 24 hours, trading at about $4.29 during the mid-London session on Tuesday, October 1.
Sell Pressure Increases – Here’s Why
The Ethereum-based restaking project has faced increased selling pressure since its market debut. According to analysis from GeckoTerminal, the EIGEN/WETH trading pair has seen over 4,300 sell orders, compared to only 1,200 buy orders, indicating a significant imbalance in market activity.
Following the token unlock, Spot On Chain has reported significant selling activity from Tron (TRX) founder Justin Sun. Notably, five addresses linked to Sun received 5.24 million EIGEN tokens, valued at over $21 million, within the last 24 hours.
These tokens were deposited to the HTX exchange earlier today, raising market speculation.
Institutional Interest in EigenLayer
Despite the selling pressure, EigenLayer has attracted considerable support from institutional investors, particularly those looking to engage in the Ethereum staking program.
Leading market makers Flow Traders and Auros Global each received approximately 3.454 million and 1.6 million EIGEN tokens, respectively. Additionally, Galaxy Digital acquired 1.52 million tokens, while two Ether whales purchased 702,324 $EIGEN tokens worth about $2.86 million in the past four hours, according to on-chain data from Lookonchain.
What do you think about EIGEN’s performance so far? Share your thoughts.
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