Lido and Ethena Surge Over 14% as Traders Buy Staking Tokens
Crypto traders increased their investments in Ethereum staking tokens on Friday, resulting in price increases for several assets:
- Lido (LDO) rose by 14%
- Ethena (ENA) gained 15%
This uptick followed a week of declining prices amid changing market sentiment. The shift is often viewed as a buying opportunity. Both LDO and ENA are approaching their previous highs from early August, which were boosted by a statement from the U.S. Securities and Exchange Commission indicating that liquid staking protocols are not classified as securities.
The SEC's clarification has encouraged institutional interest, with significant growth in Figment's market position among liquid-staking protocols. Recent trading volumes reflect this momentum:
- ENA trading volume doubled to $1 billion in 24 hours
- LDO’s trading volume increased by 83% to $256 million
Despite positive trends, the ether validator queue remains high at 825,580 ETH (approximately $3.8 billion). Unstaked ether tokens could be sold for profit or staked elsewhere, potentially impacting future price movements.