EigenLayer Leads Trends Amid Decentralized finance Market Decline: What’s Happening?
EIGEN is gaining popularity, and uptrend investors remain optimistic notwithstanding the recent dump. With the EigenLayer TVL increasing by 41% in just a month, will EIGENUSDT reach $5 within the next few months?
The overall digital currency trading market capitalization has decreased almost 5% to $3.44 trillion. While Bitcoin retains its position as the leading asset, capturing over 60% of the trading market share, it has shown a downward trend, trading under $106,000 at current spot rates.
This decline indicates that the leading cryptocurrency has dropped 5% over the past week yet still outshines XRP and Dogecoin (DOGE), which fell by 10% and 16%, respectively.
In the face of this stability and prospective weakness that may affect the trading market overall, EigenLayer, the liquidity restaking platform, is positioned among the top cryptocurrencies to consider investing in, having dominated market trends in the past 24 hours.
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EIGEN Rises 15% Before Declining
According to Coingecko, EIGEN, the native token, surged by 15%, surpassing a significant liquidation threshold before experiencing a decline.
By climbing higher, EIGEN not only enhanced its value against ETH and Bitcoin but also solidified its presence in Decentralized finance.
Nevertheless, this increase was not sustained as prices fell after pessimistic activity intensified earlier today. Most Decentralized finance tokens also experienced sell-offs.
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As of May 30, EigenLayer oversees assets exceeding $11.15 billion, predominantly on ETH, making it the third-largest Decentralized finance protocol, behind only Aave and Lido.
In just the last month, its TVL surged over 41%, as per DeFiLlama data.
(Source)
EigenLayer on the Rise: What’s Happening?
Though this is notable, EigenLayer is gaining momentum and contributing to a more positive outlook and interest in some of the most promising new cryptocurrencies to invest in 2025.
Yesterday, EigenLayer’s founder, Sreeram Kannan, announced updates regarding the management of slashing penalties.
This news is anticipated to unlock a new tier of financial applications, potentially propelling EIGEN to new highs by Q4 2024.
Slashing officially commenced on EigenLayer on April 17, with Infura and LayerZero integrating slashing for their Actively Validated Services (AVSs) soon after.
The introduction of the slashing feature has officially rendered EigenLayer “complete,” enabling the platform to automatically ensure accountability for both operators and stakers.
Validators and key EigenLayer operators are penalized for failure to meet performance expectations, such as maintaining high validator reliability.
Additionally, validators and operators involved in any malicious actions are subject to slashing penalties.
While appealing, slashing encompasses an opt-in provision, implying that stakers and other essential participants must voluntarily choose to engage in slashable conditions.
A “unique stake allocation” function was similarly implemented to confine slashing risks to specific AVSs, thereby diminishing overall systemic vulnerabilities.
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A New Phase of Accelerated Growth? Will EIGENUSDT Retest $5?
Following the May 28 announcement, EigenLayer intends to allocate slashed funds to AVSs complaints within the protocol rather than burn those funds.
Burning, as implemented in ETH and BNB Chain, can lead to lowered inflation. In contrast, the distribution in EigenLayer could stimulate growth, enhancing buyer interest for EIGEN.
It remains to be seen how swiftly developers and AVSs will create new financial dApps on the network. Nonetheless, when they do, they will be protected by Ethereum locked on the mainnet.
Currently, EIGEN is trading above $1.5. Any breakout affirming the price breakout on May 29 might catalyze a rise to $2 and subsequently $5 in a sustained buying trend.
Collaborations with Lombard Capital, bringing BTC restaking to EigenLayer, along with new products that leverage the restaking liquidity layer, will likely sustain growth.
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EigenLayer EIGEN on the Rise After Major Slashing News
- EIGEN gaining traction, remains stable above $1.5
- EigenLayer solidifies its status as a premier DeFi network with over $11.15 billion in TVL
- DeFi protocol to initiate distribution of slashing funds
- Will EIGENUSDT rise to $5 and revisit 2024 peaks?
The post EigenLayer Takes the Lead Despite Decentralized finance Trading market Decline: What’s Happening? appeared first on 99Bitcoins.
