Lido, Ethena Rally as Traders Reenter Ethereum Staking Sector Post-SEC Clarity

Ethereum staking tokens rebounded sharply on Friday, with Lido (LDO) and Ethena (ENA) gaining 14% and 15% respectively, as traders capitalized on recent pullbacks and renewed institutional interest.

The rally follows a week-long dip that accompanied a broader shift in market sentiment — often seen as a buy signal in volatile sectors like decentralized finance (DeFi). Both LDO and ENA are now approaching levels last seen during their early August surge, which was fueled by the U.S. Securities and Exchange Commission’s declaration that liquid staking protocols do not constitute securities.

That regulatory clarification has been widely viewed as a bullish catalyst for Ethereum-linked DeFi projects, particularly those reliant on staking models to generate yield. The move also opened the door for institutional inflows, with Figment emerging as a leading beneficiary — underscoring growing demand for compliant staking infrastructure.

Trading volumes spiked alongside price action. ENA trading pairs saw volumes double to $1 billion over the past 24 hours, while LDO volume climbed 83% to $256 million, per CoinMarketCap data.

The renewed momentum in LDO and ENA was further supported by bitcoin (BTC) and ether (ETH) holding above key support levels, signaling a broader uptick across altcoins. However, caution remains warranted: the Ethereum validator exit queue still holds over 825,000 ETH ($3.8 billion), raising the possibility of large-scale unstaking.

If a significant portion of that ETH is sold rather than restaked, it could dampen further upside across staking-related tokens despite the sector’s improving fundamentals.