EIGEN Token Faces Rough Market Debut: Did Justin Sun’s Dump Cause a Sell-Off?
Qadir AK1 Oct 20242 min read
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.
