Why Rocket Pool Crypto Rocketed Higher This Week | The Motley Fool

What happened

Generally speaking, the set cryptocurrency The market has performed relatively well over the past week. Interest in several mega-cap tokens has driven the sector higher, though certain lesser-known tokens have taken the cake as top performers over the past week.

rocket pool (CRYPTO:RPL) is one such token that is up 9.8% in the last seven days, as of 3:45 pm ET. The enthusiasm for Rocket Pool seems to be tied to of ethereal Recent update from Shanghai, which has allowed staked Ethereum to be removed from liquid staking pools.

So what

Like other pools of liquid participation, such as Lido DAO, Rocket Pool allows individual investors to stake relatively small amounts of Ethereum to earn passive staking income. Currently, the threshold for people to set up a node to stake Ethereum on the Beacon Chain is 32 ETH. At current prices, that comes out to about $63,500. That is certainly a huge sum and has prompted many Ethereum investors to consider liquid staking solutions to pool their funds.

Now what

It is unclear how long the track for bullish momentum among Ethereum staking-related projects will last. There are certainly some risks to liquid staking platforms such as Rocket Pool as long as the Ethereum team decides to lower their staking threshold for nodes.

That being said, the fact that Rocket Pool continues to see positive price appreciation suggests that this momentum-driven move has legs. It is not clear to what extent we see a continued uptrend in the coming weeks. However, this is a project that I have put on my radar and I think crypto investors who are intrigued by the Ethereum ecosystem should keep an eye out.