Why did Rocket Pool's price rise 17%?

Rocket Pool is the second largest liquid-stake protocol after Lido. Its own RPL token is up 17% in the past 24 hours.

While Ethereum has continued its sideways movement since the beginning of the month, the staking service Rocket Pool has made a decent price jump. Indeed, RPL rose 17% in the past 24 hours.

Rocket Pool Staking

A year ago, Ethereum switched to proof-of-stake. Since then, so-called validators secure the network by depositing ETH into the protocol (staking). In return, they get money back. The catch: the minimum stake for running such a node is 32 ETH. That is currently about $52,000.

Rocket Pool addresses this problem. Here it is already possible to bet from as little as 0.01 ETH. Users join together in a pool to jointly support a validator. Rocket Pool is the second largest provider of this service behind Lido.

What can the RPL token do?

RPL token is the native token of the Rocket Pool ecosystem. It serves as a so-called governance token and gives the owners voting rights in the community. This gives them a say in the development of the protocol. RPL are distributed to operators of nodes in exchange for support of the network. In addition, RPL themselves can be used for staking.

Where does the pump come from?

At the time of writing, RPL is trading at $25.03. Rocket Pool currently has a market capitalization of $493 million. According to data from Defillama the Total Value Locked is $1.75 billion. In the past four weeks, RPL's price has fallen 10%. On X (formerly Twitter), some users suspect that the activity of a large wallet is behind the recent price movements.

Data from Onchain shows that large RPL transfers have taken place from one wallet in the past 24 hours. According to analysis platform Lookonchain, this wallet used $735,000 worth of ETH yesterday to buy RPL tokens.

Op based on the data can be seen that the owner of the wallet sent RPL worth $871,000 to an unknown address this morning. Then the wallet continued to exchange ETH holdings for RPL. Most recently at 10:20 a.m. for $16,300.