Key Takeaways
- Andreessen Horowitz (a16z) invests another $70 million into EigenLayer’s EigenCloud services.
- Blockchain developers on Eigenlayer would leverage its EigenCloud to build verifiable Apps.
- EigenCloud service is a game-changer for both the crypto space and its ecosystem.
For several years, the crypto space has faced real problems and frustration, as applications only verify what happens on the blockchain, while AI computations in the real world have remained a mystery for many crypto projects. However, news broke that Eigenlayer had cracked the code.
The introduction of EigenCloud by EigenLayer enables blockchain developers to build apps with verifiable capabilities on the blockchain, utilizing both on-chain and off-chain real-world data.
According to its official statement on X and backed by a16z Venture Capital with a $70M investment, the platform can extend blockchain verification capabilities off-chain and bring a trustless, guaranteed system to the blockchain, something that has been missing for years.
With these releases and backing, what does this mean?
Eigenlayer would be moving from an Ethereum restaking layer to a more comprehensive developer toolkit designed for building secure AI models, both on-chain and off-chain.
How would these benefit its ecosystem and developers?
EigenCloud Impact to Developers and Ecosystem
EigenLayer, on Tuesday, June 17th, announced that venture capital giant Andreessen Horowitz (a16z) had invested an additional $70 million to launch EigenCloud. This investment follows a previous investment of $100 million in a series B round.
With the help of these investments, the platform will fully focus on building the EigenCloud, a feature that has been lacking for many developers in the crypto space. According to Eigen Labs CEO Sreeram Kannan, this gives developers more liberty to deploy verifiable applications without needing to become blockchain experts.
Further to the impact of these new technologies, it is aimed to bridge the gap between traditional cloud services and decentralized cloud services. Building on-chain is limited. Off-chain can’t be trusted. EigenCloud gives you both cloud-grade power and crypto-grade trust.
Three primitives will power the EigenCloud:
- Eigenda: high-throughput data availability
- EigenVerify: dispute resolution as a service
- EigenCompute: verifiable off-chain execution
All powerful primitives will be secured by restaking and enforced by EIGEN.
Despite this news, the price of EIGEN continues to struggle to reclaim strong bullish price action following a price crash from its previous all-time high of $5.6.
EIGEN Price Analysis
Source – EIGEN Price Analysis From Coinmarketcap
The price of EigenLayer (EIGEN) has experienced a significant decline from its all-time high of $5.60 to a low of $1.20, as the price is beginning to show signs of a potential bullish price reversal from bearish price dominance.
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For bullish price action, the price of EIGEN needs to break towards a high of $2 to resume a strong bullish price rally, as whales and investors would be more willing to jump on the price to the upside.
Fundamentally, EIGEN remains strong but struggles to complement its price with the current ecosystem growth.
