Lido (LDO), a decentralized autonomous organization (DAO) that provides liquid staking solutions for Ethereum (ETH) and other proof-of-stake (PoS) blockchains, saw its token surge 20% in the past 24 hours. The token’s price jumped from $1.98 on January 30 to $2.37 at the time of writing.

Kraken Reintroduces Staking Services In Select States

On January 30, cryptocurrency exchange Kraken announced the relaunch of its staking services for US clients in 37 states and two territories. The exchange also noted plans to expand these services to additional states as regulatory conditions allow.

For the uninitiated, Kraken facilitates staking by delegating users’ staked tokens to network validators, who are responsible for transaction validation and block production. These validators then return rewards – minus fees – to clients who have staked their tokens with them.

Commenting, Mark Greenberg, Global Head of Consumer at Kraken said the launch of this staking product in the US is a positive development for the entire US crypto industry. Greenberg added:

Kraken serves as a bridge so people can access the crypto space and participate in an increasingly broad range of related activities from an interface and platform that they’re familiar with. Onchain staking is a key component of how we fulfill this role and we believe the resumption of staking in the US today will play a significant role in the development and mass adoption of crypto.

Following the announcement, LDO experienced a sharp spike in buying activity, propelling its price above the psychologically significant $2 level. At the time of writing, LDO boasts a total market cap of $2.1 billion, making it the 63rd largest cryptocurrency by market capitalization.

Lido Soars 20%, What Do The Analysts Say?

LDO’s surge has caught the attention of crypto analysts, many of whom see further upside potential. Crypto analyst World of Crypto noted that LDO is breaking out of both a bullish pennant and a descending broadening wedge. A successful breakout could send the token to the $7–$8 range within a few weeks.

Similarly, crypto analyst Daan Crypto pointed to $3 as a crucial resistance level for LDO to break. He attributed the token’s outperformance to investors positioning themselves ahead of the Ethereum staking narrative. They added:

It’s just a matter of time before we’ll see the first ETH Spot ETF filing with staking included. That should kick off the ETH & staking narrative and should help boost the performance on these Liquid Staking Derivatives coins.

As a token closely tied to Ethereum staking, LDO’s price trajectory remains heavily influenced by ETH’s performance. Fortunately for LDO holders, analysts remain optimistic about an upcoming Ethereum rally.

Earlier this month, crypto analyst Mister Crypto remarked that ETH looks ‘bottomed out’, potentially getting ready for a strong rebound. At press time, LDO trades at $2.37, up 19.1% in the past 24 hours.