EigenCloud [EIGEN] The crypto-token has been one of few to show a two-digit return, even though the ongoing turmoil in the market continued to sap capital.
Inflows of capital across the on-chain eco-system and an increase in buy-side positions in its perpetual market resulted in a strong bullish trend. This combination indicated that the rally had room to continue.
Why are capital flows flowing to EigenCloud?
Recent rallys reflected a stronger capital flow on the chain, as more money moved into the protocol.
Over the last seven days, the Total Value Loaded (TVL) metric has increased. This metric tracks the capital that is being deposited on the protocol. As more liquidity entered into the ecosystem, it rose from $4.366billion to $4.719billion.
TVLs that are rising typically indicate a growing long-term commitment by investors, who have committed their capital to the protocol rather than rotating it elsewhere.
Over the course of this time, 353 million dollars have been pumped into EigenCloud. The steady growth of EIGEN has reinforced its bullish outlook.
Do traders support the rally?
As on-chain capital increased, traders of derivatives also strengthened their bullish arguments.
The Whale-to-Retail Ratio was declining at the time this article was written, suggesting that retail traders were responsible for more recent purchases. The move was in line with the sharp increase of Open Interest on EIGEN permanent contracts. Open Interest rose 27% to about $43,000,000, an increase of approximately $11.6 Million.
This increase was accompanied by a rise in the Funding Rate to approximately 0.0040%.
A positive Funding rate usually indicates that traders long paid traders short to maintain positions. It usually signifies a more bullish market.
However, the risk remained primarily with retail participants. Retail traders react faster to changes in sentiment, and they could increase sales when momentum weakens.
Does EigenCloud improve its core fundamentals?
EigenCloud has also improved financial performance, reducing quarterly losses.
As per DeFiLlamaEigenCloud reported a Q1 loss of approximately $8.70 Million. This figure was reduced to $2.43 in the most recent reporting period.
Between Q3 2025 to Q2 2026, the protocol reduced total losses by approximately $19.87 millions.
The trend of improving fundamentals could increase investor confidence in the future if they continue to be able to sustain growing activity on-chain and bullish positions for derivatives.
Final Summary
- The Total Value Locked has risen as new capital is flowing into EigenCloud.
- The rising Open Interest Rate and Funding rate reflected a growing bullish position in derivatives.
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Source: ambcrypto.com
