Rocket Pool Price

The Rocket Pool cryptocurrency could be a good asset to invest in, especially if you believe in the potential of Ethereum staking and the DeFi market in general. The RPL price could increase as more users stake their ETH tokens using the Rocket Pool liquid staking protocol.

The resulting increase in on-chain activity could power up the demand for the RPL crypto, powering an uptrend in the Rocket Pool price. Increased interest in DeFi activities could also boost the RPL price statistics.

Positive sentiment in the crypto market could also contribute to upward moves in the RPL price, as a risk-on attitude could encourage more buying activity in the market. On the other hand, a bearish or risk-averse sentiment could result in sell-offs that could weigh on the Rocket Pool price.

Although it is impossible to offer an accurate RPL price prediction over any duration, there are several fundamental factors you can monitor to gauge how the Rocket Pool token price fluctuates. These include:

Level of Liquid Staking Activity

The RPL price could increase as more users sign up to stake ETH on the Rocket Pool protocol. Higher Rocket Pool staking could increase the demand for the $RPL token and make it a more valuable investment.

Future Partnerships and Developments

The staking activity on Rocket Pool could also head higher as more partners integrate with the protocol’s staking services. When the team of developers announces more upgrades and adds more features that increase the attractiveness of staking on Rocket Pool, the RPL token price could strengthen further in the market.

Market Outlook

A favorable outlook among investors towards cryptocurrencies in general and the DeFi market specifically plays a vital role in supporting the price of Rocket Pool crypto. However, bear market conditions or a risk-off sentiment in global financial markets could exert downward pressure on the price of RPL crypto.

RPL is the native utility token of Rocket Pool. It serves the following functions:

Collateral

Users wishing to stake ETH on Rocket Pool must deposit a minimum amount of RPL as collateral. The RPL deposit serves to offset any potential penalties they may incur in the future while staking ETH.

Incentive Token

Users who stake ETH on Rocket Pool receive rewards in ETH and RPL. The RPL rewards are generated from the token’s inflation and are proportional to the amount of RPL they deposit as collateral initially.

Crypto Asset to Trade and HODL

Trace Rocket Pool tokens against other crypto assets to profit from market conditions and changes in volatility. You can buy or sell RPL against other cryptocurrencies or hold it long-term if you believe in the future potential of Rocket Pool. Review the live price of Rocket Pool cryptocurrency, RPL market cap, circulating supply, 24-hour trading volume, and the latest crypto news before trading RPL in the market.

You can stake ETH on Rocket Pool in two ways - staking less than 32 ETH or staking 32 ETH and higher to run a validator node on the Ethereum blockchain. Let’s take a look at how to perform liquid staking on ETH (less than 16 ETH without operating a Rocket node):

1. Open the Rocket Pool dApp and scroll down to the Stake ETH section. Click on Stake.

2. This will open up a new window leading to the staking interface.

3. Connect your wallet here. Ensure your wallet is sufficiently funded with ETH by buying Ethereum on KuCoin or other supported platforms and withdrawing the tokens to your wallet.

4. Enter the number of ETH tokens you wish to stake and check the number of rETH-wrapped tokens you will receive, the APR, and gas fees.

5. After reviewing all details, proceed with the transaction by clicking on Stake. Confirm the transaction from your wallet.

6. Sit back, earn staking rewards, and grow your crypto holdings by liquid staking ETH on Rocket Pool.

Rocket Pool and Lido are among the leading liquid staking protocols for Ethereum 2.0. Here’s a comparison between the two:

rETH vs. stETH

Both platforms allow users to stake ETH without locking up liquidity. They do this by offering wrapped tokens that can be used in other DeFi applications. Rocket Pool offers rETH to stakers, while Lido offers stETH tokens.

Market Share

Lido enjoys an extremely high market share and is the dominant liquid staking protocol, accounting for over 80% of ETH staking pools and a TVL of over $8 billion. On the other hand, Rocket Pool accounts for around 5% of the market share and a TVL of just under $1 billion as of February 2023.

Centralized vs. Decentralized

While Rocket Pool is entirely decentralized and aims to reduce the entry barrier and make ETH staking more accessible, Lido operates in a more centralized manner. This has caused the Lido protocol to face criticism over concerns about the concentration of staking power.