EIGEN’s FDV Falls Below $6.4 Billion Amid Airdrop Fallout
EIGEN’s Fully Diluted Valuation (FDV) drops to $6.4 billion after launching a significant airdrop, causing the token to retreat over 2% to $3.61. The market cap stands at $717 million with 186 million tokens in circulation. Analysis of a Polymarket poll indicated 96% of participants correctly predicted an FDV below $10 billion, marking a win for these traders. The retreat was attributed to limited token release during the airdrop, general bearish crypto market conditions, and significant sell-offs by recipients. This is consistent with declines seen in other tokens like Hamster Kombat post-airdrop. Despite this downturn, EigenLayer continues to grow in DeFi, boasting over $11.75 billion in assets, driven by its innovative restaking approach, earning users dual returns.
Bearish
The news of EIGEN’s drop post-airdrop suggests a bearish trend, as it mirrors similar market behaviors where tokens typically fall after air-drop releases due to dilution and profit-taking by recipients. This is compounded by the overall bearish sentiment in the crypto market, impacting investor confidence. Historically, such scenarios lead to short-term declines as investors adjust to new supply and uncertainty. However, if EigenLayer’s strategies like restaking yield future growth, it may stabilize in the long term.