Coinbase Ventures works with Rocket Pool, the third largest Ethereum liquid staking protocol by trade value locked (TVL). Coinbase Ventures will join Rocket Pool’s Oracle DAO, according to a message on Rocket Pool’s discord channel (oDAO).
The oDAO is in charge of running Rocket Pool’s ETH staking nodes and voting on upgrades to Rocket Pool’s smart contracts. Rocket Pool is run by two decentralized autonomous organizations (DAOs). Members of the oDAO are paid with the governance and utility token RPL from Rocket Pool.
Analysts think the new partnership could help Rocket Pool catch up to Lido, which is currently the leader in the market for ETH liquid staking. DeFi Llama says that 4.88 million ETH tokens are staked on Lido’s platform right now. That’s about the same amount that was bet on Rocket Pool.
Coinbase Ventures is the part of Coinbase that deals with venture capital. Coinbase is the most popular bitcoin trading platform in the United States. Coinbase is the second largest service provider for ETH liquid staking, having wrapped 1.042 million ETH coins as of this writing.
Analysts believe the collaboration will help Rocket Pool surpass Lido and become the best ETH liquid staking service. “Coinbase is a well-known company, and having their engineers protect data gives some institutions confidence in the protocol,” said Jasper, a fake name for a Rocket Pool community advocate. “Also, the ecosystem as a whole is getting a boost,” he said.
DeFi Llama says that Lido still has the best ETH staking yield, with a rate of 5% compared to Rocket Pool’s rate of 4.43%. Rocket Pool may need help closing the gap in TVL if they can’t close this yield gap.
That might not matter to crypto investors with a more rigid view of decentralization. Many people in the crypto space think that Rocket Pool’s decentralized governance structure makes it the most decentralized ETH liquid staking services provider.
Rocket Pool should do well in the coming months because of the partnership, the recent failure of FTX, which is another reminder of the risks of centralizing crypto, and the upcoming Ethereum Shanghai upgrade, which will allow staked ETH withdrawals for the first time. All of these factors are expected to contribute to Rocket Pool’s success.
But some people in the Rocket Pool community were worried about how the influence of a big centralized cryptocurrency company (Coinbase) would affect how the oDAO is run.
RPL, the utility and governance token for Rocket Pool, has been going up in the last few sessions. At the previous trade, one RPL token was worth under $32, and monthly gains are currently around 65%. In the coming weeks, traders are looking for a possible test of the highs from before Ethereum merged, which were around $44.
Prices have gone up since the news of the partnership with Coinbase Ventures. Prices are also going up because of the upcoming Ethereum upgrade, allowing staked ETH withdrawals at the end of Q1.
Let’s say that the cryptocurrency markets as a whole keep going up because people are betting that the US Federal Reserve will cut interest rates later this year because inflationary pressures are going down and growth is slowing. In that case, RPL is likely to continue its recent rise.
23 Jan 2023
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