EIGEN (EIGEN) Spikes by 20% as Justin Sun Cashes in $14M from Token Unlock Event

EIGEN, EigenLayer's native token, spiked by 20% on Wednesday, crossing the $4 benchmark. It was the only top altcoin to be trading higher in a market marred by heavy selloffs.

EIGEN, the native token of EigenLayer, experienced a 20% surge in its value on Wednesday, crossing the $4 benchmark and becoming the only top altcoin to trade higher in a market characterized by substantial selloffs.

Meanwhile, Bitcoin, the most prominent cryptocurrency, encountered difficulties in maintaining its level, trading at around $62,000.

However, digital assets, in broad terms, experienced a slight upturn, with the cumulative market cap touching $2.17 trillion while the 24-hour trade volume experienced a decrease of 13%, dropping to $68 billion.

Justin Sun’s Tokens Unlock Event Impacts EIGEN Price

Prominent token unlocking events played a significant role in influencing EIGEN’s recent price increase.

One of the major beneficiaries of this event was crypto billionaire Justin Sun, who received 3.62 million EIGEN tokens, valued at over $14 million.

According to data obtained from SpotOnChain, Sun transferred all of these tokens to Binance at a price of $3.89 each.

This marks the second major EIGEN transaction by Sun. Earlier, on October 1, he sold 5.2 million EIGEN tokens (approximately $21.5 million) to the HTX exchange.

Sun’s involvement with EigenLayer has continued following the company’s listing. In total, he has claimed and deposited over 8.8 million EIGEN tokens ($35,610,400) at Binance, with an average token price of $4.02.

EIGEN Trading Volume Surges Amid Price Increase

EIGEN’s trading volume experienced a substantial uptick from October 7th to October 10th.

The volume stood at $426 million on Oct 7th, and it rose dramatically to around $1.13 billion by October 10th.

This marks an impressive 165 percent jump in trading volume across the three days.

The increase in volume is a clear indication of heightened investor interest, which is likely a result of recent developments and market trends.

The token’s price rose by 20% in the last seven days. However, a 7% drop on Thursday cut the weekly gains to just 7%. As of writing, EIGEN has an average price of $3.73.

EigenLayer had to deal with concerns earlier this month regarding an unauthorized sale of $5.5 million worth of EIGEN tokens.

The sale was tied up in a compromised email thread, where the attacker had hijacked 1.67 million tokens, which were then quickly swapped for stablecoins.

Centralized exchanges and law enforcement are working with EigenLayer towards the recovery of stolen assets and a portion of the funds has been frozen.

EigenLayer Targets Web3 and Gaming Markets

Following the October 1 token unlock, EigenLayer is shifting its focus to consumer Web3 applications, especially in the DeFi and gaming space.

Leveraging $11 billion worth of restaked collateral, the platform is looking to secure a bigger share of the market and become a dominant name in the Web3 world.

In a recent interview, Sreeram Kannan founder of EigenLayer revealed how the protocol has progressed.

EigenLayer’s first focus will be on high throughput applications such as DeFi and gaming but intends to eventually broaden to other consumer markets, EigenLayer he said.

He also noted that EigenLayer’s native restaking protocol EigenDA will act as a gateway for consumer apps to the platform’s wider ecosystem.

As a service focused on data availability, EigenDA is expected to become one of the corners of the app attracting additional users and stakers.

With their programmatic incentives, which involve cryptocurrency stakers who earn around 4% of the token’s total supply EIGEN emissions, they are aiming to spur participation and expansion in the EigenLayer ecosystem.

EigenLayer Eyes a Potential 34% Surge as Bulls Target Breakout Above Key $4.2 Resistance

The EIGEN/USD chart displays key resistance levels and potential upside targets. The current price is at $3.73, with a significant resistance zone at $4.2, which has previously acted as resistance.

A successful breakout above this level could pave the way for a rise towards the next psychological target of $5.00, representing a potential surge of 34% from the $3.73 level.

If the price fails to break above $4.20, it may struggle to establish a bullish momentum.

The Money Flow Index (MFI) is showing a reading of 55.20. This indicates a slight increase in buying pressure and suggests that the bulls are gaining control.

The positioning of this indicator above the 50 level is supportive of a bullish thesis. If the