$LDO , the native token of liquid staking protocol Lido Finance, has surged 64% over the past week to $1.52. The rally comes as two major developments converged to boost investor confidence. On the regulatory front, the SEC clarified that liquid staking activities don't constitute securities offerings, removing a key overhang that had weighed on LDO since 2024. This policy shift coincides with BlackRock's application to include staking in its spot Ethereum ETF, which could drive significant new demand to Lido given its 25% share of ETH staking.

The price surge also follows a draft proposal for LDO buybacks using the protocol's $145 million treasury reserves. The plan suggests dynamically allocating between 50-70% of liquid assets to repurchase LDO depending on treasury balances. While details like token burns remain unspecified, the market has reacted positively to the prospect of improved capital efficiency. Community discussions are ongoing, with a Snapshot vote scheduled for August 25 that could formalize the buyback program.

After lagging behind other major DeFi tokens like AAVE and ENA for an extended period, LDO appears to be regaining market attention. The combination of regulatory clarity, potential institutional inflows through staking ETFs, and proactive treasury management suggests the token may finally be entering a phase of price discovery. However, sustained momentum will likely depend on the final buyback implementation and broader market conditions for staking-related assets. The coming weeks will be critical in determining whether this rally marks a temporary bounce or the beginning of a more substantial revaluation.