The U.S. Securities and Exchange Commission’s (SEC) clarification around liquid staking continued to lift asset prices across the staking sector this week, with ETH rising to $4K for the first time since December on Friday.
Several layer-2 networks have also benefited from ETH’s recent ascent. Ethereum scaling solution Optimism’s native token (OP) rose 8% in the past 24 hours, solidifying a weekly gain of 13%, while rival network Blast also experienced a rise of 6.3%.
Mantle, which uses optimistic rollups to process transactions off-chain before settling them on the Ethereum mainnet, led the pack, with the MNT token jumping by 50% in the past week.
The staking sector in general has outperformed the wider market, with LDO up 12.3% and ETHFI up 5.4% in the last 24 hours.
This clarification follows a very brief “altcoin season” last month that saw significant moves for altcoins against their bitcoin trading pair.
The SEC’s clarification on liquid staking could open the floodgates to institutional capital, which has shown interest in investing in assets like ether but has been hesitant to acquire yield through DeFi due to earlier regulatory uncertainties.
Rebecca Rettig, part of Jito’s legal team, hinted that liquid staking tokens could become part of an ETF following the SEC’s announcement.
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