The Plain Language Series: SEC Approves Liquid Staking:
Traditional staking is like putting money in a fixed deposit at a bank; you lock your coins in the network to help maintain blockchain security, then earn rewards. The downside is that these coins cannot be moved at all during the staking period. Liquid staking, on the other hand, is like the bank giving you a certificate of deposit; you can enjoy the fixed interest while also using that certificate to trade in the market or make other investments.
For example, if you stake Ethereum, the platform will give you a representative certificate that can be freely traded in the market, meaning your funds are not completely locked up. From a data perspective, there are currently over 30 million ETH staked across the network, and if this portion of funds can achieve liquidity, the efficiency of capital in the entire DeFi ecosystem would greatly improve!
Similarly, the SEC's approval means that U.S. regulators recognize this financial innovation model. Since it has been approved, it will definitely attract more traditional institutional funds. I can't say for sure whether other tokens will rise, but I can confidently say that ETH will definitely see a significant increase, and the market has validated this. Of course, I'm saying this after it has already risen; if you call me a backseat driver, I accept that, hahaha