The EigenLayer Airdrop: A Billion-Dollar Crypto Event?

Plus Solana Goes Down Again🤦‍♂️

Author

will stauner
February 08, 2024

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The Phenom Crypto Update

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GM,

Fun fact: February is a historically green month for crypto. Since 2013 BTC has only had 2 red February’s and ETH has only had 1 😳. I’m not sure about you but I’m happy to have crypto exposure this month. Hopefully we start to see some take off now that we’ve had a bit of a end of year/new year reset. We should also see outflows of GBTC waning and get a more normalized view of the impacts of the ETFs.

Courtesy of Glassnode

Cheers,

Will

Here is what we’ve got this week:

  • Solana Network down again

  • ENS partners with GoDaddy

  • Is EigenLayer going to drop a B on us?

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Market Rundown

Market has been relatively flat this week with the exception of a bit of bump for ETH most likely due to hype around the Dencun upgrade. Overall market cap for the week is down 0.1% on a significant decrease in volume.

The EigenLayer Airdrop: A Billion-Dollar Crypto Event?

Eigenlayer reopened their deposit limits on the 5th and it is setting the stage to be one of the biggest launches of the year. Restaking is one of the biggest narratives this year and Eigen is the clear market leader. Lets dive into an overview of what we might be able to expect when they launch their token.

Valuing: Estimating the value of EigenLayer, a yet-to-launch crypto protocol, is challenging. Unlike anything else, yet Celestia comes close, standing at a $15B valuation after a dip from $20B. With well over a billion TVL already there should be no problem matching that market cap.

EigenLayer vs. Celestia: With a broader service offering beyond just data availability (DA), EigenLayer has more revenue streams, potentially making it a hotter investment pick. However, lacking a blockchain network means missing out on the coveted L1 premium, possibly reducing its value next to Celestia's TIA token.

The Potential of EIGEN: Despite limitations, enhancing EIGEN's utility as a payment token might offset some drawbacks. Yet, pressures from those cashing out the airdrop could affect its demand.

Forecasting the Airdrop: Speculations suggest EigenLayer might match Celestia's valuation, hinting at a launch range of $10B to $20B. Predictions lean towards a generous 10% token supply airdrop to early users, setting the stage for a billion-dollar airdrop.

Impact on Individual Depositors: With 760k ETH already parked and more on the horizon, depositors rack up points, dreaming of a payout between $0.21 to $0.41 per point by next February - translating to $907 to $1,814 per ETH staked. Yet, this optimistic outlook hinges on a lot of variables.

Bottom Line: A mix of speculation, potential, and strategic moves could place EigenLayer's airdrop among the most lucrative crypto events, painting a picture of anticipation and strong gains for early supporters.

If you haven’t already you can currently still restake some ETH on the protocol and start earning towards the eventual airdrop at https://app.eigenlayer.xyz/

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For the Crypto Culture

Reading Corner

Check out newsletters we are reading this week

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DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.

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