This is known as a plug. Plugs are used in various circumstances. Sometimes they are official and meant to doctor the weight or metallic value. More often they are private and used to repair damage, in particular holes made to be able the use the coin as jewellery.
From what I can see on the picture, my best
guess is that the coin was used as a decoration. It was fashionable at this time to decorate objects with coins or deform them for other use, e.g. for making a spoon.
This is the speculation paragraph.

The wear on this coin is quite uneven. The value side looks pretty good, while the side with the eagle is badly worn. This may be an indication that the coin was worn on clothes, that rubbed the eagle side with every step, leaving the value side untouched. Imagine the coin being a pin, a child's first jewellery e.g. as a memory of the "old country". The maker knew the child would give it a rough treatment, so rather than using the usual piece of resin, the maker dug out a little hole and soldered the pin into it. I am imagining the pin as the top end being bent into a small oval. At some point, the child lost the coin anyway, but it is now in your good hands.
Peter