$EIGEN to be Available for Trading: What You Need to Know About Content and Market Dynamics

Research firm Kairos Research stated that this Tuesday was an important day for $EIGEN as the token transfer functionality has been officially enabled. Kairos analyzed the supply and market dynamics of EIGEN.

Supply Dynamics: Understanding Circulating Supply

Kairos explains that the total supply at the launch of $EIGEN was 1,673,646,668 tokens. However, the actual circulating supply has significantly decreased due to two important StakeDrop events:

• StakeDrop 1: Contributed 6.75% of the total supply
• StakeDrop 2: Contributed 5.2% of the total supply

This resulted in a circulating supply at launch of approximately 11.95%, which is around 200,000,776 EIGEN tokens.

Actual Circulating Floating Supply vs. Initial Expectations

A deeper understanding of token dynamics reveals a situation different from expectations. During the first quarter of StakeDrop 1, only 85.4% of tokens were claimed, resulting in 95 million EIGEN. Currently, in the second quarter, only 21.7% of tokens have been claimed, adding 18.6 million EIGEN.

Therefore, the current real-time "circulating supply" is 114 million EIGEN. Of these, 73 million EIGEN have been re-staked through EigenLayer, reducing the actual circulating floating supply to 40.43 million EIGEN.

Price Impact: Floating Supply and Market Value

Kairos states that based on the current pre-market price of $3.84 per EIGEN on HyperLiquid, the market value of the floating supply is $155 million. This translates to a Fully Diluted Valuation (FDV) of $6.42 billion. The extremely low floating supply of 2.42% could potentially cause significant volatility in the market price discovery process.

Claim Dynamics: Factors Affecting Token Availability

There are currently two key factors affecting claim dynamics:

1. Operator Claim Delays: Operator claims will not be activated until after October 6, which could lead to delays in token claims.
2. Tax Considerations: Slow claim speeds may also be related to tax planning, as the claim window will remain open until March 25 next year.

Major Claimants Analysis: Wallet Data Insights

Through data analysis from Dune Analytics, Kairos identified some of the largest claimants in the StakeDrop quarters. While the data was not fully consistent across different queries, the validity of these wallet claims was confirmed through cross-checking with Etherscan. It is important to note that the entity labels of these wallets may not be 100% accurate, as they were derived through a combination of Arkham and Nansen labels and fund tracking.

Several of these high-claim wallets have chosen to restake some or all of their EIGEN tokens, which could play a significant role in market conditions as they hold substantial shares and the circulating floating supply is limited.

Unlock Schedule and Future Supply Allocation

Kairos notes that it is worth mentioning that the unlocking of $EIGEN tokens will begin one year later starting this Tuesday. Additionally, 3% of the supply has not been distributed in the second quarter of StakeDrop, and there is an additional 4% for program rewards out of the first-year total supply.

As more supply gradually enters circulation, platform features will be further enhanced, such as penalty mechanisms, providing users and market participants with clearer insights to assess the demand drivers and long-term potential of $EIGEN.