Trackers on January 18 show that the native token of Rocket Pool, RPL, rallied 55% and is among one of the top performers in the top 100 coins by market capitalization.
Rocket Pool is Rallying after Binance Listing
The surge coincides with RPL’s listing on Binance, the world’s largest cryptocurrency exchange by trading volume. The token is paired against USDT, the stablecoin issued by Tether Holdings, which is also the most liquid in crypto circles, and BUSD.
However, the surge registered earlier today has since been reversed. Data showed that the project’s market cap is $675.1 million, and RPL is up 9% versus the USDT. At the same time, it outperforms bitcoin (BTC) and ethereum (ETH), adding roughly 10% versus the top most liquid cryptocurrencies.
Listing on Binance opens the token to more liquidity, allowing traders and investors who might not be familiar with the intricacies of DeFi trading to purchase the token. Before being availed on Binance, RPL was available for trading in most decentralized exchanges, including Uniswap, Bancor, and Balancer. However, RPL had been listed in exchanges within the United States, including Huobi, Coinbase, Kraken, and MEXC Global.
Hard work of the @Rocket_Pool team paying off with a @binance listing today. A project we have remained bullish on for many years with $RPL up 100x since first covering. The next market cycle is now about decentralising all layers of the $ETH stack. 🚀🌐🖥️
— Alex Saunders 🇦🇺👨🔬 (@AlexSaundersAU) January 18, 2023
By springing to spot levels and clearing immediate liquidation zones, printing new monthly highs, it can be interpreted that the community received the listing positively, expecting more developments in the next few months. This can be especially the case considering the market’s state and Rocket Pool’s role in Ethereum.
After the slumps of 2022, RPL, like most crypto and DeFi tokens, fell from record highs. As an illustration, RPL tanked 76% from April highs, bottoming up in mid-June before rallying to spot levels. Despite the blips of early November, triggered by market-wide fears of FTX and Alameda’s collapse, RPL is back to April’s territory.
Improving Macroeconomic Factors and Shanghai Upgrade
The sharp reversal and change in fortunes for RPL can be attributed to various fundamental factors. At the top of the list, possibly explaining the rise across the financial markets is shifting macroeconomic factors.
Statistics indicate that inflation is falling from multi-year highs, influencing central banks’ decisions on implementing their monetary policies. The confidence amongst investors and traders spilled over the crypto, helping pump BTC and altcoins, including RPL.
Rocket Pool has more tailwinds because of the upcoming Shanghai Upgrade in Ethereum and what the protocol inherently solves. Rocket Pool allows ETH holders to stake, slashing capital and hardware requirements, which can be otherwise prohibitive.
ETH holders can stake as low as 0.01ETH to a node operator and earn annual rewards. In Rocket Pool, a node operator must hold 16 ETH. Once Ethereum permits users who had locked their coins in the Beacon Chain to withdraw, some may delegate coins via Rocket Pool. This expectation supports RPL and other staking service providers, including Lido DAO.
As NewsBTC reported, Lido DAO’s native token, LDO, has been rising in recent weeks, spearheading the broader market recovery.
Featured image from Flickr, Charts from TradingView.com