Staking Tokens Lido and Ethena Jump Over 14% as Traders Rush Back In
Ethereum staking tokens Lido (LDO) and Ethena (ENA) surged Friday, each climbing more than 14% as investors bought the dip following last week’s pullback.
The rebound comes as both tokens aim to revisit their August highs, which were driven by a favorable regulatory update from the U.S. Securities and Exchange Commission (SEC). Earlier this month, the SEC clarified that liquid staking protocols do not fall under securities laws—an announcement that triggered a broader rally across decentralized finance (DeFi) assets tied to Ethereum.
The market saw a sharp sentiment shift this past week, and Friday’s gains suggest traders interpreted the drawdown as a buying opportunity. LDO rose 14%, while ENA gained 15%.
Trading activity followed suit: ENA’s 24-hour trading volume doubled to $1 billion, while LDO’s volume rose 83% to $256 million, according to CoinMarketCap.
Institutional interest also appears to be growing. Staking provider Figment has seen increasing dominance, hinting that traditional investors may be stepping up exposure to Ethereum-based staking products.
The rally was further supported by broader crypto market stability. Both bitcoin (BTC) and ether (ETH) held key support levels after Federal Reserve Chair Jerome Powell signaled a potential rate cut in September, which boosted risk sentiment across markets.
However, challenges remain. Ethereum’s validator exit queue remains elevated, with more than 825,000 ETH (worth approximately $3.8 billion) waiting to be unstaked. If significant portions of these tokens hit the market, they could add downward pressure to prices.
Still, Friday’s sharp bounce in staking-related tokens suggests that confidence is returning to the DeFi sector, with traders responding to both regulatory clarity and improved macro conditions.
