SEC Green Light on Liquid Staking Sends ETH Past $4K, Spurs Broad Staking and Layer-2 Rally
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 been the beneficiary of ETH's recent ascent. Ethereum scaling solution Optimism's native token (OP) rose 8% in the past 24 hours to cement a weekly gain of 13%, rival network Blast also experienced a uptick of 6.3%.
Mantle, which uses optimistic rollups to process transactions off-chain before settling them on the Ethereum mainnet, was the leader of 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 past 24 hours.
The clarification comes after a very brief "altcoin season" last month that led to a series of 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 been open to investing in assets like ether but not acquiring a yield through DeFi due to it previously being a regulatory gray area.
Rebecca Rettig, part of Jito’s legal team, hinted that liquid staking tokens could become a part of an ETF following the SEC's announcement.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
BUILDon rallies as holders hit record 87,320 – Can B extend its gains?
Goldman Sachs Hedge Fund Chief: "Zero-Day Options" Suppress U.S. Stock Volatility, Technology and Energy Remain the Best Choices
The S&P 500 has experienced intraday fluctuations of less than 1% for 27 consecutive trading days, marking the longest period of low volatility since the pandemic. Goldman Sachs warns that this "calm" is the result of zero-day options strategies forcibly locking in the market, and once a catalyst emerges, the compressed volatility energy will be released all at once. Meanwhile, expectations for a rate hike in September are rising, market sentiment has dropped to its lowest point of the year, and fiscal sustainability risks loom large—is this pot of heating water going to boil for much longer?
Balancer eyes wind-down after restructuring fails to revive revenue
Is a new wave of sell-offs approaching? The ultimate rival of the AI bull market emerges—The "global anchor of asset pricing" breaks through the 5% super threshold
After the 10-year US Treasury yield breaks back above the critical 5% mark, it is more likely to usher in a period of high-level tug-of-war and accelerated asset differentiation. Especially before energy shocks and the significantly eased large-scale expansion of the US fiscal deficit, the conditions to quickly replicate the sharp yield decline seen at the end of 2023 are not yet fully in place.
Crypto prices
More
