TechFlow news, on October 7, DeFi researcher Ignas pointed out that the amount of EIGEN currently staked exceeds the circulating supply of EIGEN—242 million staked versus 186 million in circulation (according to CMC and Coingecko data). This is because EigenLayer allows investor tokens in a "locked" state to be used for staking. Ignas added that this is a common issue across the industry, with TIA appearing to have a similar problem. It dilutes the staking rewards truly available to end users and limits the token's appreciation potential, as lower APYs are insufficient to incentivize people to buy these tokens from the market.
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