EigenLayer Failed to Complete its Promises: Researcher

EigenLayer (EIGEN), a leading blockchain protocol focused on restaking while leveraging the Ethereum network, has failed to stand up to the expectations of the investors, claims Alex Obchakevich, the founder of Ukrainian-Austrian cryptoanalytics company Obchakevich Research.

In a post on X (formerly Twitter) on Friday, the researcher highlighted how EigenLayer attracted a lot of attention during its initial days and successfully raised a massive $64.5M from venture capital funds. EigenLayer promised “innovation in liquid staking, delivering high revenues for users and reliability for investors” but failed to do so, said Obchakevich.

Related: EigenLayer (EIGEN) Price Prediction 2024-2030: Will EIGEN Price Hit $10 Soon?

Obchakevich stated that the users of the EigenLayer protocol expected significant returns from staking their assets but the actual returns were significantly lower which resulted in increased dissatisfaction and finally, the transparency of the project was questioned by the digital asset community.

The researcher further said that the digital asset community suspected that insider trading and market manipulation was rampant after a massive $2 billion worth of EIGEN was sold once the token was listed on all the major crypto trading platforms.

Meanwhile, Obchakevich went on to sing the high praises of an early-stage protocol Bracket which is a new project on the liquid betting market and aims to bring innovation in the sector. The researcher claims that Bracket “has no desire to chase hype and artificially increase its audience and TVL.”

Related: EigenLayer Token Unlock Hits Snag: Price Dips and Security Concerns

EIGEN Token Skyrockets 7%

The EIGEN token skyrocketed almost 7% in the past 24 hours and is up a massive 15.45% in the last seven days. Meanwhile, the altcoin has jumped 6.42% in the past month and is trading just 13.5% lower from its all-time high of $4.53.

The chart from TradingView above confirms that the accumulation of the digital asset has declined in the past few days but the gradient of the line suggests that slightly higher prices are possible in the near future.

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