Market
Why Did EigenLayer (EIGEN) Crash 20% After Binance Listing?
EigenLayer’s native token, EIGEN, experienced a sharp price drop of 20% shortly after being listed on Binance and other top exchanges. Despite initial excitement surrounding the listing, concerns over transparency quickly shifted market sentiment.
These issues appear to have harmed the token’s potential growth, causing uncertainty among new and existing investors.
Eigen Labs Under Fire
EigenLayer made headlines ahead of the listing of its native token, EIGEN. However, following the listing, the token made headlines again, but for a different reason. The network’s developers, Eigen Labs, were criticized for their lack of transparency regarding the staking of the token.
Generally tokens issued to the investors of the project are locked up as to prevent a pump and dump. These tokens are then gradually unlocked over time known as the “vesting period” only after which are investors allowed to trade or sell them.
Read More: What Is EigenLayer?
Interestingly this is not the case with EIGEN as investors were already allowed to stake their “locked up” tokens. While this was not initially communicated by Eigen Labs, it was simply added to their update documents.
This led to a massive uproar in the community, in response to which Eigen Labs provided clarity on Wednesday.
“Investors are allowed to stake both EIGEN and non-EIGEN assets on EigenLayer. Contracts with investors required that investors be permitted to stake EIGEN and that any rewards be unlocked. The maximum all EIGEN stakers can get annually is 1% of total initial EIGEN supply. This is claimable weekly and takes a whole year to get linearly released. This 1% includes all EIGEN stakers, including investors,” Eigen Labs stated in a post.
The developers also noted that the investors were not eligible for stakedrops and prohibited the Eigen Labs and Eigen Foundation teams from participating but were allowed to stake from the first day.
As a result of this controversy, EigenLayer’s network growth has suffered significantly. This metric, which tracks the rate at which new addresses are formed on the network, is often used to measure a project’s traction.
Within 24 hours, network growth dropped by 91%, signaling that new investors are losing confidence. This decline in interest may be directly tied to the ongoing transparency controversy, which is creating hesitation among potential investors.
The drastic drop in new addresses is a worrying sign for EigenLayer’s future, as network growth is a key indicator of long-term success. If the project fails to address these transparency concerns, the token’s market position may weaken further.
EIGEN Price Prediction: Expect the Unexpected
EIGEN’s price plummeted from $4.15 to $3.34, marking a 19% decline within a single day after its listing. This sharp drop highlights the volatility and skepticism surrounding the token, especially following its debut on major exchanges.
While the bearish sentiment may persist, the likelihood of EIGEN reclaiming $3.75 as support remains low due to ongoing investor skepticism. This uncertainty could lead to further price drawdowns if confidence isn’t restored quickly.
Read More: How to Participate in an EigenLayer Airdrop: A Step-by-Step Guide
If EIGEN loses the $3.25 support level, the altcoin may face additional losses. However, breaching $3.47 and flipping $3.75 into support could invalidate the short-term bearish outlook and reignite investor interest. For now, market sentiment remains fragile, with investors closely monitoring transparency developments.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Market
Why Bitcoin Buy Signal Poses Risks
Amid the general market decline, 97,602 traders have liquidated in the past 24 hours, with the combined liquidation value reaching $274.73 million. The leading coin, Bitcoin (BTC), has extended its decline, slipping by 1%, while its trading volume plummeted by 20% during the same period.
Interestingly, a key on-chain metric has flashed a buy signal, suggesting an opportunity for BTC contrarian traders. However, caution is advised, as the market still faces potential downside risks.
Bitcoin Flashes Buy Signal
Bitcoin’s market value to realized value (MVRV) ratio, which measures the overall profitability of all its holders, is the on-chain metric of interest here. As of this writing, the coin’s 30-day and 90-day MVRV ratios are -0.89 and -1.48, respectively.
Generally, a negative MVRV indicates that the current market price is below the average price at which most investors acquired the asset. Therefore, if all holders were to sell their coins at the current market price, they would collectively realize a loss.
However, the metric also offers some respite. Historically, negative MVRV ratios represent a buying signal. They indicate that the market is oversold, and a potential buying opportunity could exist. A negative MVRV shows that the asset is being traded below its historical acquisition cost and may be due for a rebound.
Read more: Top 7 Platforms To Earn Bitcoin Sign-Up Bonuses in 2024
Some traders are already heeding the buy signal and have begun to accumulate the leading coin. Recently, there has been an unprecedented surge in new whale activity, marking levels of involvement never seen before.
“ Look at how fiercely the new whales are stacking Bitcoin; this market has never seen such accumulation,” Ki Young Ju, CryptoQuant’s founder, said in a post on X.
While this buy signal may encourage some traders to increase their BTC holdings, it’s important to note that the risk of further decline remains. The market’s buying pressure continues its downward trend, as reflected in BTC’s falling Relative Strength Index (RSI), which currently stands at 44.88.
The RSI is a key indicator of overbought or oversold market conditions. At its current level of 44.88, selling activity outweighs buying pressure among BTC holders.
BTC Price Prediction: Key Support Levels to Hold
Should selling pressure intensify, Bitcoin could approach the critical support level at $58,518. A failure by bulls to defend this price may trigger a further drop, with the next support target at $54,899.
Read more: Bitcoin (BTC) Price Prediction 2024/2025/2030
However, if market sentiment shifts from bearish to bullish, Bitcoin may reverse its trajectory, invalidating the bearish outlook. In this case, BTC could rally toward $64,367 in the near term.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Market
Grayscale’s Aave Fund Expands Its Crypto Investment Portfolio
Grayscale, the American digital currency asset management company, has launched an Aave fund, providing investors with exposure to the AAVE token. This new offering expands Grayscale’s lineup of crypto investment products, which now includes over 20 different vehicles.
Aave is an open-source protocol that enables the creation of non-custodial liquidity markets. It allows users to earn interest by supplying and borrowing assets at either a variable or stable interest rate.
Grayscale Adds Aave Fund To Its Product Suite
The fund, Grayscale Aave Trust, is solely invested in and deriving value from the price of the AAVE token. It will track its value, less fees and expenses. With this fund, investors will be able to access the token as a security. While doing so, they will avoid challenges relating to buying, storing, and safekeeping the AAVE token directly.
“We are proud to announce the creation of a new single-asset crypto investment fund, Grayscale AAVE Trust, which will be available through private placement. Available to eligible accredited investors,” read the official announcement.
Grayscale Aave Trust adds to the list of funds the asset manager offers, extending its suite of investment products in the decentralized finance (DeFi) space. As BeInCrypto reported, the firm launched an Avalanche Trust recently, offering exposure to the AVAX token.
Read more: How To Use Aave?
Taken together, Grayscale now boasts over 20 different crypto investment vehicles, including the flagship Bitcoin Trust (GBTC) and the Ethereum Trust (ETHE). It is worth mentioning that these funds come after Grayscale successfully launched spot Bitcoin ETFs in January. These draw significant investor interest in crypto products that are now tradable publicly.
Grayscale also opened a decentralized AI fund to accredited investors, offering them a diversified basket of tokens from sector projects. These developments highlight Grayscale’s increasing institutional interest in integrating traditional finance (TradFi) into the DeFi ecosystem.
Meanwhile, interest in the Aave protocol comes as the decentralized lending platform allows users to lend and borrow crypto using automated processes. Specifically, Aave allows users to borrow without the need for traditional financial intermediaries.
The platform has grown in popularity. It is the largest crypto lending protocol based on metrics of total value locked (TVL) of $11.652 billion, according to data from DeFiLlama.
Read more: Top 11 DeFi Protocols To Keep an Eye on in 2024
Despite the news, the AAVE token price remains subdued, down nearly 4% since Thursday’s session opened. According to BeInCrypto data, the token is currently trading at $137.59.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Market
Why PEPE Price May Fall By 35%
Popular meme coin Pepe (PEPE) is under significant pressure, primarily driven by the profit-taking activity of its long-term holders (LTHs). It currently trades at $0.0000090, witnessing an 18% price decline over the past four days.
Two notable on-chain metrics reveal that previously dormant PEPE tokens held by its LTHs have begun to change hands. If this cohort of PEPE holders continues to sell, the meme coin may witness another double-digit decline.
Pepe Long-Term Holders Book Profits
The first metric indicating profit-taking among Pepe’s long-term holders (LTHs) is its Mean Coin Age. BeInCrypto’s analysis shows that this metric has declined by 1% since the beginning of October, currently standing at 300.
This metric calculates the average age of all coins held by addresses on the blockchain. A decline indicates that older coins are being sold or transferred, suggesting that long-term holders (LTHs) are beginning to liquidate their positions. This activity may be driven by profit-taking or a shift in market sentiment.
Read more: Pepe: A Comprehensive Guide to What It Is and How It Works
Furthermore, PEPE’s falling Mean Dollar Invested Age (MDIA), which measures the average age of a token’s holdings based on their dollar value, highlights the selling activity among its LTHs. At 153 at press time, it has noted a 4% decline since October 1.
A decreasing MDIA suggests that older, more established holders are selling their tokens. It signals a change in market sentiment, indicating that investors are becoming less confident in the token’s long-term prospects.
The surge in profit-taking activity among an asset’s LTHs is a bearish signal, indicating a loss of confidence among a cohort of investors known for weathering numerous headwinds. This shift may prompt short-term holders (STHs), often called “paper hands,” to sell their coins.
Since STHs hold a significant percentage of an asset’s circulating supply, their selling can further exacerbate downward pressure on the price.
PEPE Price Prediction: August 5 Low on the Horizon
If PEPE’s selling pressure intensifies, the coin could continue its decline. According to its Fibonacci Retracement readings, PEPE may fall an additional 35%, reaching $0.0000058 — a level last seen on August 5.
Read more: Pepe (PEPE) Price Prediction 2024/2025/2030
On the other hand, if PEPE’s LTHs refrain from selling their tokens and market sentiment improves, PEPE could reverse course. In that scenario, the coin may initiate an upward trend and attempt to break resistance at $0.000012.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
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