EigenLayer’s withdrawal demand has been increasing in the past three days, with over 120,000 ETH being withdrawn. Although this quantity does not affect the operation of the protocol, it reflects the market’s digestion of the expectation for Eigen token airdrops. This phenomenon is expected to continue for a period of time.
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Increase in EigenLayer Withdrawal Demand
Market Digesting Airdrop Expectations
With EigenLayer announcing the end of the first phase snapshot and preparing to distribute airdrops, there has been a stable and significantly higher withdrawal demand in the past few days.
Within the past 72 hours, there have been 14,000 withdrawal requests, resulting in the withdrawal of 40,000 ETH (approximately $120 million). The EigenLayer protocol currently holds 3.18 million ETH and LST tokens, with an impact of approximately 1.25%.
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EigenLayer Withdrawal Status
(Data Source)
The market has had high expectations for EigenLayer’s airdrop this year. However, due to the indefinite lock-up mechanism and the majority of token distribution being held by the internal team, there has been dissatisfaction within the community.
(EigenLayer tokens have not been enabled for circulation, causing dissatisfaction within the community)
As the assessment of airdrop benefits gradually becomes clear, the market needs time to digest excessive expectations. Some users have also decided to cash out their profits, and it is estimated that there will be more ETH withdrawal incidents in the near future.
Recommended Reading:
How will EigenLayer’s EIGEN token be used to protect AVS security?
Reason for Recommendation: This article introduces the utility and unique mechanism of the EIGEN token, which will provide a better understanding of why the tokens need to be locked indefinitely.
EIGEN
EigenLayer
Further Reading
Eigen Foundation Calms Anger: Offers Additional Airdrops, Announces Lifting of Circulation Restrictions on 9/30
As EigenLayer enters the next phase, it is important to know about these projects before the AVS wave arrives.