EIGEN FDV slips to $6.4b, in a victory for Polymarket traders

The Eigenlayer token is down more than 2% after launching one of the most anticipated airdrops of the year.

EIGEN slips after being airdropped

EigenLayer (EIGEN) fell to $ 3.61 and gained a market value of $ 717 million. There was a total supply of 1.68 million tokens and 186 million were in circulation.

Its fully diluted value, calculated by multiplying the total supply by the price, was over $6.4 billion.

The FDV valuation means most respondents in the Polymarket survey with assets over $5.4 million are correct. 96 percent predicted its FDV would be less than $10 billion, while 2 percent predicted the valuation would be between $10 billion and $15 billion.

There are three possible reasons for the withdrawal of the EIGEN token. First, only a small portion of the tokens were released during the airdrop, which means token holders can expect further dilution as the rest are released in the future.

Secondly, the pullback occurred due to the general state of the crypto market, where most cryptocurrencies are in the red. Bitcoin (BTC) fell 1.3% to $62,700, while the total market value of all cryptocurrencies fell 1.13% to over $2.23 trillion. In most periods, newly launched tokens often crash when the broader market is not doing well.

Newly launched tokens crash frequently

Finally, EigenLayer’s token likely retreated as most of the airdrop recipients exited some or all of their positions. This is a common situation in airdrops. For example, popular tap-to-earn token Hamster Kombat dropped over 50% following its airdrop last week.

Other popular tokens fell sharply after launching their airdrops this year. Wormhole (W) is down 82% from its all-time high. Similarly, ZkSync, Notcoin (NOT) and Catizen (CATI) also declined after their debut.

EigenLayer is one of the fastest growing players in the decentralized finance industry, with assets exceeding $11.75 billion and venture investment of more than $150 million. Lido is only third after DAO and AAVE.

The network introduced the concept of re-staking, where users put previously staked assets back into the staking pool. By doing this, users get two compound returns over time.