According to an article on BlockBeats news, on October 7, leading cryptocurrency expert Ignas pointed out that there are currently more EIGEN tokens pledged than there are in circulation. The total pledged amount is 242 million, while the circulating amount is only 186 million (according to data from CMC and Coingecko).
This situation arises because EigenLayer allows investors to pledge tokens that are currently “locked.” Ignas mentioned that this is a common issue in the industry, with TIA facing similar challenges.
This ultimately means that there are fewer staking rewards available to actual users, and it limits the potential for the token to increase in value. The lower APY may not be enticing enough for people to purchase these tokens from the market.
You can find the original article here.
