EigenLayer (EIGEN) priced stabilized as the post-airdrop listing momentum faded. The EIGEN token was trading at $3.56 on Friday, 12% above its lowest point this week. It remains in a bear market after falling by 20% from its all-time high.
EigenLayer holder dumps token
The EigenLayer token held steady after a user dumped all his 1.67 million tokens he received from the team wallet.
The discovery, which was made by Lookonchain showed that the user received the tokens on Friday and then sold them almost immediately in bunches. As such, there is a likelihood that the seller is a member of the EigenLayer team or one of the investors.
It is not uncommon for token holders to sell them shortly after the airdrop. In most cases, investors do that as a risk management strategy. In this, they sell part of their tokens to avoid making substantial losses since most tokens drop sharply after an airdrop.
Data by DEXTools shows that EigenLayer has over 204,800 token holders, with the top ten holders accounting for 52% of all tokens while the top ten accounts hold 78% of all coins.
Notably, the number of EIGEN holders has dropped from over 238k to the current 204,800, meaning that many investors have exited.
EigenLayer’s growth concerns remain
Meanwhile, there are concerns about EigenLayer’s growth trajectory as the amount held in its platform continues falling.
Data by DeFi Llama shows that the amount of funds staked dropped to $10.7 billion, down from over $20 billion in June. Also, the number of active addresses in the network has dropped to just 528 from over 33k a few months ago.
Similarly, the amount staked in Lido DAO, the biggest liquid staking platform, has dropped from $39 billion to $23 billion.
A likely reason for this performance is that Ethereum has not done well in the past few months, with its price falling by over 40% from its highest level this year.
For starters, EigenLayer is the third-biggest player in the Decentralized Finance (DeFi) industry after Lido and AAVE.
Its platform allows holders of staked tokens to stake them and generate more returns. It launched its airdrop earlier this week, with its circulating market cap being $666 million and its diluted valuation being $6 billion.
A key risk for holders is that they will go through substantial dilution as the remaining tokens are brought to the market.
