The recent surge in Ethereum's price has reignited optimism among investors, driving renewed interest in the staking sector. This upward momentum coincides with growing expectations around ETH spot ETF staking functionalities, positioning staking-related projects as focal points for capital inflows.
Ethereum's Robust Recovery: ETF Staking Expectations Boost Market Confidence
Ethereum (ETH) has staged a remarkable rally, with its market cap surpassing Alibaba to rank as the 39th-largest global asset. According to CoinGecko, ETH's price climbed to $2,521 by May 12—a 40.4% weekly gain—while Coinglass data shows a 39.53% monthly increase, marking its strongest performance since 2025.
Key catalysts include:
- Macroeconomic policy shifts
- Oversold market correction
- Anticipation of Ethereum’s Pectra upgrade
- Progress toward ETH spot ETF approvals with staking features
Notably, institutional discussions with the SEC are advancing. Grayscale highlighted that ETH ETPs lost $61 million in potential staking rewards due to current restrictions, while BlackRock emphasized staking’s role in enhancing returns. Hong Kong’s SFC has already approved staking services for virtual asset ETFs, setting a regulatory precedent.
Staking Sector Heats Up: Top Protocols See TVL and Token Prices Soar
The Ethereum staking ecosystem has rebounded sharply:
- Total Value Locked (TVL): $341.1B (+60.3% monthly)
- Restaking TVL: $128.5B (+54.8%)
Here’s a breakdown of five leading staking protocols:
1. Lido: TVL Nears $23B Amid Governance and Tech Upgrades
- TVL: $229.3B (+57.5%)
- LDO Token: +48.6%
Recent Developments:
- Launched V3 testnet with customizable staking solutions
- Proposed "dual governance" mechanism for stETH holders
- Addressed Chorus One oracle incident via decentralized safeguards
2. EigenLayer: Restaking Leader Maintains Momentum
- TVL: $113.6B (+52%)
- EIGEN Token: +69.7%
Key Updates:
- Implemented slashing on mainnet
- Preparing redistribution feature for non-ETH assets (June launch)
- Supporting Ethereum’s Pectra upgrade
3. Rocket Pool: Incentives Drive Node Growth
- TVL: $17.4B (+56.3%)
- RPL Token: +67.5%
Highlights:
- Distributed 133 ETH to node operators
- Smart Node updates and DAO funding discussions
4. Symbiotic: Modular Restaking Gains Traction
- TVL: $10.9B (+45%)
- Funding: $29M Series A led by Paradigm and Coinbase Ventures
5. SSV Network: Validator Milestone Achieved
- TVL: $89B
- SSV Token: +91.6%
Progress:
- Surpassed 100K active validators
- Launched SSV 2.0 testnet to reduce developer security costs by 90%
FAQs
Q: How does ETH staking benefit ETF investors?
A: Staking allows ETF holders to earn yield (currently ~4-5% APR) while enhancing Ethereum’s network security. This could make ETH ETFs more attractive versus traditional assets.
Q: What risks exist in restaking protocols like EigenLayer?
A: Restaking introduces smart contract vulnerabilities and slashing risks if validators misbehave. However, EigenLayer’s redistribution feature aims to mitigate capital loss.
Q: Why is Lido dominant in liquid staking?
A: Lido’s first-mover advantage, decentralized oracle design, and integrations with DeFi platforms (e.g., Aave, Curve) have solidified its position. Its upcoming dual governance model may further boost adoption.
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