Crypto traders took advantage of the dip in various Ethereum staking tokens on Friday, boosting the prices of Lido (LDO) and Ethena up by 14% and 15%, respectively.
The increase follows a week-long decline accompanied by a notable change in sentiment, which is often seen as a signal to buy.
Lido and Ethena are climbing back to last week’s peaks after an early August surge prompted by the U.S. Securities and Exchange Commission’s statement that liquid staking protocols are not classified as securities.
This SEC announcement was interpreted as a positive sign for the decentralized finance (DeFi) sector, especially for Ethereum-based protocols reliant on staking to yield returns.
The clarity from the SEC also paved the way for institutional investment, as Figment’s leading position in liquid-staking protocols indicates that institutional interest is shifting toward this sector.
Trading volume for ENA pairs surged to $1 billion in the last 24 hours, while LDO increased by 83% to $256 million.
This rise in volume, along with Bitcoin and Ether maintaining critical support levels, generally points to positive trends for the altcoin market. However, it’s important to note that the Ether validator queue remains at a high of 825,580 ETH, valued at $3.8 billion.
Once these Ether tokens are unstaked, they can either be sold for profit or staked elsewhere for potentially higher returns; the former could impede further upward movement.
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