What is Eigen Pie’s Narrative?
Eigen Pie is a subDAO under the Magpie ecosystem, designed to enhance the ETH restaking landscape. It operates on EigenLayer, a platform that allows users to restake Ethereum liquid staking tokens (LSTs) like stETH, rETH, and others, boosting yield and providing additional security. The unique approach of Eigen Pie includes offering a liquid, restaked version of LSTs that can earn rewards while maintaining flexibility. The platform integrates with key DeFi protocols like Wombat and Pendle, broadening the investment opportunities for users. However, it lacks transparency in displaying expected returns (APY/APR) and does not currently offer unstaking options, which can limit liquidity for investors. Despite these concerns, Eigen Pie's strong security features, backed by partnerships with auditing firms such as BlockSec and PeckShield, make it a promising option for advanced users in the DeFi space.
Price Analysis and Valuation of Eigen Pie
The current valuation of EigenLayer is around $1 billion. Based on the data shown by defillama, the current TVL for EigenLayer is around $11.018 billion whereas EigenPie’s TVL is around $1.044 billion. This shows that the size of EigenPie is still one tenth when compared to EigenLayer.
The current valuation of Eigen Pie is around $100 million, which aligns with its role in the ETH restaking narrative but seems underwhelming compared to other projects. The valuation suggests that the market acknowledges the project's potential but remains cautious due to issues such as the lack of unstaking options and unclear yield expectations. On the positive side, its integration with major DeFi protocols like Wombat and Pendle showcases its potential for future growth. However, its competitors may have more transparent systems and better liquidity options, posing a challenge.
Looking ahead, Eigen Pie’s fully diluted valuation (FDV) could reach as high as $500 million to $1 billion. This projection hinges on increased adoption of restaking in the broader Ethereum ecosystem. If the DeFi space continues to evolve and Eigen Pie addresses its liquidity limitations, this FDV could become a reality. The strong security features, backed by BlockSec and PeckShield, also bolster investor confidence.
Disclaimer: Price analysis and valuation are affected by many factors. Theoretical analysis does not mean that the token will definitely reach the envisioned price level. Therefore, the content of this article does not constitute any investment advice. Investors need to do their own research.
