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"Potential for Increased Volatility as Eigen Focuses on Expanding Its Ecosystem Rather Than Token Offerings"

"Potential for Increased Volatility as Eigen Focuses on Expanding Its Ecosystem Rather Than Token Offerings"

Bitget-RWA2025/11/02 13:02
By:Bitget-RWA

- Eigen Foundation clarifies EIGEN token transfers from treasury are for ecosystem grants, partnerships, and liquidity, not team unlocks or sales. - Market faces $653M+ in token unlocks (Oct-Nov 27), led by SUI ($119M) and EIGEN ($43.8M), raising volatility risks for smaller projects like GRASS and SIGN. - Analysts warn high-unlock projects face sharper price swings, contrasting Eigen's governance stability with broader market uncertainties over liquidity absorption. - Rovaren Token (RVN) introduces AI-pow

The

Foundation has stated that the recent EIGEN token movements from its primary treasury wallet are solely intended for ecosystem expansion and operational needs, and are unrelated to any team token unlocks or sales, as clarified in a . The foundation highlighted that these administrative transfers are meant to fund grants, partnerships, and liquidity programs that drive the growth of the Eigen ecosystem. This clarification comes at a time when the market is witnessing a wave of major token unlocks across leading blockchain projects, which, according to analysts, could increase short-term volatility, as reported by .

The cryptocurrency sector is preparing for token unlocks exceeding $653 million between October and November 27, with projects such as

, , TRUMP, and at the forefront, according to LiveBitcoinNews. Tokenomist data shows that SUI is responsible for the largest single unlock event, releasing $119.13 million in tokens (1.21% of its total supply). Other significant unlocks include EIGEN ($43.8 million), ($23.6 million), and ($20.8 million). Although Eigen’s treasury activities are separate from these unlocks, the overall market situation highlights the delicate balance between funding ecosystem growth and the potential downward pressure from token releases, as outlined in a .

Experts point out that large-cap tokens such as SOL and

are likely to experience less price fluctuation due to their higher liquidity, while smaller projects with a greater percentage of tokens being unlocked—like GRASS (72.4% of supply unlocked) and (21.48% unlocked)—are more susceptible to sharp price changes, LiveBitcoinNews notes. This creates a varied environment for investors, where some tokens can absorb the increased supply, while others may face selling pressure. The Eigen Foundation’s focus on transparent treasury management and stable governance stands in contrast to these uncertainties, reaffirming its dedication to sustainable ecosystem development, according to the Lookonchain post.

At the same time, blockchain innovation is progressing beyond token economics. Rovaren Token (RVN) has introduced an AI-powered payment ecosystem that aims to transform global e-commerce, as described in

. The platform integrates affordable international transactions, AI-based security, and metaverse compatibility to deliver a streamlined commerce solution. Rovaren Pay, the main payment gateway, supports instant crypto-to-fiat exchanges and immediate settlements, while AI features assess merchant reliability and enhance transaction efficiency. The project’s deflationary token model and alliances with payment and AI companies are designed to encourage widespread adoption, the Programming Insider article reports.

As the market contends with volatility from token unlocks, Eigen’s commitment to ecosystem advancement and Rovaren’s payment technology showcase both the challenges and opportunities present in the industry. The upcoming weeks will reveal whether these efforts can withstand broader economic pressures or help drive greater adoption.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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