Kraken deposits $1.07M ETH into Eigencloud despite EIGEN token down 96%

Kraken, a major crypto exchange, deposited about 50,600 ETH worth $1.07 million into Eigencloud, an Ethereum restaking protocol with $6.5 billion in total value locked (TVL). Despite this strong TVL, Eigencloud’s native EIGEN token has fallen roughly 96% from its all-time high, trading at $0.25, due to a large annual earnings deficit caused by high incentive payouts exceeding fee revenue. Kraken’s deposit signals ongoing institutional interest in Ethereum restaking yields rather than token speculation. Eigencloud faces pressure to prove its restaking services can generate enough fees to cover incentives and sustain growth in 2026.