EigenLayer's EIGEN token will be transferable on September 30th. Daily Coin Research: Being criticized now is better than being unnoticed.

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Transfer Restrictions to End on September 30

After months of anticipation, EigenLayer officially announced that the transfer of EIGEN tokens will be allowed starting on September 30. This announcement follows an update from the EigenLayer Foundation on September 23, confirming that all transfer restrictions on EIGEN will be lifted, allowing holders to freely trade and sell their tokens for the first time.

This is significant for the EigenLayer community and the broader staking ecosystem, as they have been eagerly awaiting the ability to transfer EIGEN tokens. However, it is important to note that a seven-day withdrawal period is still required when unstaking EIGEN tokens. Currently, there are over 76.9 million EIGEN tokens staked on the platform.

Innovation in Staking on Ethereum

EigenLayer has garnered widespread attention in the decentralized finance (DeFi) space with its innovative concept of "staking." It allows Ethereum (ETH) stakers to earn additional rewards by providing security for the active verification service AVS while participating in Ethereum network validation. Since the mainnet launch in April this year, EigenLayer has quickly become one of the top DeFi protocols. Initially, users could only deposit ETH and earn EigenLayer points, but with the mainnet launch, users can now provide security for AVS, further enhancing the protocol's utility.

Furthermore, EigenLayer has spawned the liquid staking token LRT ecosystem, enabling many protocols to establish new gamified incentives through EigenLayer.

LRT Battle | ether.fi, Puffer Finance, Kelp DAO Top Three, What's the Story Behind Staking and Restaking?

EigenLayer Maintains Leadership in DeFi

EigenLayer's success in the DeFi space can be seen through its Total Value Locked (TVL). According to DeFi Llama, the protocol is currently the third-largest DeFi protocol with a TVL of $12 billion. Despite a slight decrease in TVL, the platform still holds 4.64 million ETH, accounting for approximately 13% of the total Ethereum staked amount. From a peak of 5.43 million ETH in mid-June, which saw a 14% drop, EigenLayer continues to dominate in the field.

Airdrop Concerns Addressed by EigenLayer

Despite facing community backlash during the first-quarter airdrop in April, EigenLayer addressed concerns with the "non-transferrability" of EIGEN tokens for sale or trade. Additionally, users from seven jurisdictions, including the US and Canada, were geographically blocked from claiming the tokens. The linear distribution model of the airdrop also resulted in smaller users receiving fewer tokens than expected. In response to these issues, EigenLayer increased the allocation by an additional 100 EIGEN tokens for all 280,000 eligible users to appease the community.

In September, EigenLayer announced the plan for the second-quarter staking airdrop, distributing 86 million EIGEN tokens, approximately 5% of the total supply. This airdrop was open for claiming on September 17.

EigenLayer Launches Second-Quarter Staking Airdrop, Distributing 86 Million EIGEN Tokens

Furthermore, EigenLayer expanded its supported staking assets to include tBTC, an ERC-20 token collateralized by Bitcoin, further enhancing opportunities to expand its ecosystem.

Daily Coin Research: It's Better to Be Criticized Than Ignored

Alvin, founder of the media outlet "Daily Coin Research," commented that the circulation of EIGEN tokens is a significant event for the staking market, with the Puffer Finance ecosystem also expected to issue tokens simultaneously, potentially sparking a new wave of enthusiasm. According to Thor, the pre-market price of EIGEN is significantly undervalued compared to the FDV during the coin launch on Etherfi. As the market warms up, the price continues to rise, with an increase of over 50% from the low point, suggesting that the next boom in the Ethereum DeFi ecosystem may start with EIGEN. If EIGEN underperforms on September 30, the weakening of the staking ecosystem will likely impact the price of ETH.

However, the issuance of tokens for these staking ecosystem protocols is inevitable. It's better to face criticism for timely token issuance than to be forgotten in a bear market. The future development of the staking ecosystem depends on the vibrant supply and demand market for AVS.