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Analyzing EigenLayer’s Post-EIGEN Airdrop Daily Flows

Eigenlayer

Since May 6, there have been four days when daily net outflows exceeded $45 million; This shows that a significant amount of funds are leaving the EigenLayer platform. This observation comes from The Block’s Data & Insights newsletter.

A few weeks ago, we discussed how the reaction to EigenLayer’s EIGEN airdrop had led to an increase in the number of queued withdrawals on the platform.

Despite some initial issues with the airdrop, such as VPN restrictions and tokens not initially transferring, the Eigen Foundation responded by expanding airdrop allocations and clarifying token unlock timing and future transferability, which helped alleviate some concerns.

Some users, in addition to those upset by the initial EIGEN announcement, may have deposited money into EigenLayer just to manage the airdrop and were happy to exit the platform after the snapshot.

Now the real impact of the increase in the withdrawal queue is clearly visible. Since withdrawals are subject to a 7-day escrow period, actual withdrawals from the platform are recorded approximately one week after initiation. The surge in queued withdrawals began on April 29, when the EIGEN tokenomics were announced, but significant outflows began on May 6, after the escrow period ended.

We can more clearly observe the capital flight affecting EigenLayer as well as the debtors. The number of depositors increased in mid-April, when EigenLayer launched its mainnet and continued to fund liquid staking tokens, so the increase in withdrawals did not necessarily cause major problems for the re-staking platform.

The platform has handled the pressure relatively well so far. Since May 6, there have been four days when daily net outflows exceeded $45 million, indicating significant fund outflows. However, that $45 million is a small number compared to EigenLayer’s total value locked (TVL) of around $15 billion; thus, the general funds that secure the repurchase networks remain largely unchanged.

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Although net negative days occurred more frequently after EIGEN’s launch, there are also net positive days, such as May 15, when the platform brought in $57 million. The initial increase in withdrawals appears to be stabilizing, but daily levels remain higher than before the token’s emergence.

Now that EigenLayer has launched its mainnet, it can deliver the promised extra returns to depositors. EigenLayer, the re-share platform with the largest safety net, is probably the most attractive option for new services looking to avoid re-initiating their own liquidity. This puts EigenLayer in a good position to attract new services, increase rewards for depositors, and potentially keep user funds within the protocol.


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