Livepeer (lpt) 
EigenLayer’s Token Sees Strong Recovery Post-Airdrop
EIGEN Unlocks and TVL Retreat
The EigenLayer token has shown a significant rebound, climbing to $3.86, marking its highest level since October 2 and 26% above its all-time low. This recovery follows the founder’s announcement shifting the network’s focus to Web3 applications, a strategic move after last week’s airdrop. EigenLayer does not have a consumer-facing application but secures multiple actively validated services, including AltLayer, Ethos, and Lagrange.
The token’s resurgence also came in the wake of a security breach where a hacker stole 1,673,645 tokens valued at over $6.8 million. The attacker moved these tokens through a decentralized swap platform before transferring the stablecoins to centralized exchanges.
Community Update: In an isolated incident this morning, an email thread involving one investor’s transfer of tokens into custody was compromised by a malicious attacker. As a result, 1,673,645 EIGEN tokens were erroneously transferred to the attacker’s address.
Risks Ahead for EIGEN Token Holders
Holders of the EIGEN token face two primary risks moving forward. First, there is a dilution risk due to EigenLayer’s 187 million tokens in circulation against a maximum cap of over 1.6 billion tokens. According to the developers, the network will unlock and distribute 67 million tokens, or 4% of the initial supply, in the first year. These unlocks will occur every Tuesday over the next 12 months, with 3% allocated to Ethereum and liquid staking token stakers, and 1% to EIGEN stakers and operators. Token unlocks typically have a bearish impact by increasing the number of tokens in circulation, thus diluting existing holders.
The second risk involves a decline in the demand for restaking. Data shows that EigenLayer’s total value locked (TVL) has dropped to $10.7 billion, down from over $20 billion earlier this year. In Ethereum terms, the network secures 4.43 million Ethereum, a decrease from the year-to-date high of 5.34 million. This decline may be attributed to a recent drop in Ethereum’s staking market cap, which has fallen nearly 8% in the past 24 hours to $83 billion.
EIGEN Forms Inverse Head and Shoulders Pattern
On the hourly chart, the EIGEN token reached a bottom at $3.04 on October 6 and subsequently bounced back to $3.8, its highest point since October 2. The token has risen above the 25-period moving average and has formed a bullish inverse head and shoulders pattern, considered one of the most positive signals in price action analysis. Given this pattern, there is a strong likelihood that EigenLayer’s token will continue its upward trend and possibly retest its all-time high of $4.58, representing a 23% increase from the current level.
For more updates and detailed analysis, stay tuned to Global Crypto News.
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