ETH Surge Fuels Over 10% Rally in Staking-Focused Tokens Lido and Ethena

Ethereum Staking Tokens Lido and Ethena Rebound as Traders Reenter Market

Ethereum staking tokens Lido (LDO) and Ethena (ENA) surged Friday, posting gains of 14% and 15%, respectively, as crypto traders snapped up discounted tokens following a week of price declines.

The rally comes as both assets attempt to reclaim levels reached during an early August spike, which was driven by the U.S. Securities and Exchange Commission’s (SEC) clarification that liquid staking protocols do not constitute securities. That regulatory green light reinvigorated optimism in decentralized finance (DeFi), especially Ethereum-based protocols that rely on staking to generate on-chain yields.

Institutional interest appears to be rising in the wake of the SEC’s statement. Figment’s growing market share among staking platforms suggests that larger investors are increasingly participating in the space.

Trading volumes reflected the renewed momentum: Ethena’s daily trading activity doubled to $1 billion, while Lido’s volume jumped 83% to $256 million, according to CoinMarketCap.

The broader market backdrop also supported the upswing, with bitcoin (BTC) and ether (ETH) holding above key technical levels after Fed Chair Jerome Powell signaled a potential interest rate cut as early as September.

However, not all signals are bullish. Ethereum’s validator exit queue has ballooned to more than 825,000 ETH (worth approximately $3.8 billion), posing a potential overhang. Unstaked tokens could flood the market if investors opt to take profits rather than redeploy them for higher yield.

Even so, the sharp rebound in LDO and ENA highlights renewed trader confidence in staking tokens, as regulatory clarity and favorable macro signals breathe life back into the sector.