What Is Rocket Pool (RPL) How It Works & Where To Buy It?

Rocket Pool is an innovative Ethereum staking pool where users can stake their ETH and earn staking rewards. The Rocket Pool network lowers the initial entry requirements to stake ETH – users can become node operators on Rocket Pool if they stake 16 ETH.

RPL is the governance token of Rocket Pool and is also used as a form of insurance when staking.

The RPL token is currently the 165th largest cryptocurrency by market capitalization.

 

How Rocket Pool (RPL) Works

Rocket Pool is primarily focused on ETH staking and is geared towards the upcoming Ethereum 2.0 upgrade – Ethereum will switch to a proof of stake consensus mechanism.

The core functionality of Rocket Pool stems from Rocket Pool’s smart contracts and Rocket Pool users that have staked ETH to become a node operator. You may be wondering why people would stake their ETH on Rocket Pool; this is because, in return, they receive an APY.

These node operators are specifically geared for Ethereum 2.0, where the entire consensus mechanism will change, and the Ethereum network will be reliant on nodes to secure the network and optimize functionality.

A stake receives a portion of an rETH token when they stake ETH on the platform. These rewards accrue over time and can then be traded, used as collateral, and more once they’ve built up. Users depositing ETH are also required to stake RPL (only a small percentage) as insurance to the protocol.

The RPL security deposit is beneficial because users can earn more RPL, and the higher the Rocket Pool price, the more profits stakers receive. Node operators staking RPL aren’t bound at any time – they can withdraw their funds whenever they like.

It’s easy to think of RPL as the primary protocol token that acts as a governance token and an insurance token for users running smart nodes.

Running a Rocket Pool node is advantageous because you can easily earn rewards on your staked ETH; the entire process is permissionless, and the entry requirements to stake are lower than on other platforms.

Individuals can read through the Rocket Pool whitepaper for a more in-depth explanation of the aims and functions of the protocol.

 

What Is Rocket Pool (RPL) Used For?

Rocket Pool is an access point for ETH holders to easily run their Rocket Pool smart node by staking their own ETH and receiving an APY. The platform doesn’t take any commissions, and node operators are rewarded for their uptime and staking contribution.

The smart node network helps users by lowering the staking deposit and by providing a decentralized staking network that is run by smart contracts. The platform has become popular because it isn’t charging Rocket Pool users for participating.

In addition, traders who participate in arbitrage and swing trading anticipate profiting from price fluctuations in the RPL coin. Although doing so often results in a profit, it is important to keep in mind that doing so involves a significant amount of risk.

 

Where To Buy Rocket Pool (RPL) Token 

RPL isn’t as well known as some other cryptocurrencies but is growing in popularity as the platform gets more exposure.

RPL coins aren’t as frequently available on the majority of cryptocurrency exchanges. However, users will only purchase cryptocurrency from an exchange by using their fiat currency. RPL tokens will then be deposited into their digital wallet on the exchange.

The exchanges listed here are among the safest places to purchase, sell, and store tokens.

1. OKX
2. HTX
3. KuCoin
4. Binance

RPL tokens are typically deposited directly into a user’s digital wallet – the Rocket Pool platform is decentralized and requires users to connect their digital wallets to participate.

For users that have their cryptocurrency tokens on an exchange:

Transferring tokens away from centralized exchanges provides users full ownership of their crypto assets and private keys, hence it is highly recommended that you do it. There are many reasons for this suggestion, but this is one of them.

None of the abovementioned information is investment advice.

 

About Rocket Pool (RPL)

How long has Rocket Pool (RPL) existed?

By 2016 it became evident that Ethereum will transition from a Proof of Work consensus method to a Proof of Stake mechanism. David Rugendyke built Rocket Pool to cater to the change in consensus – and to allow users to benefit from participating as node operators.

The RPL cryptocurrency has grown in popularity over the years, and with the recent announcements about the Ethereum 2.0 upgrade happening in 2022, the protocol has seen a major influx of stakers.

Currently, there is nearly 200,000 ETH being staked on the Rocket Pool platform. User deposits have increased exponentially in recent months, and RPL stakers are currently receiving more than 10% APY.

What’s controversial about Rocket Pool (RPL)?

It is commonly known that countries throughout the globe are unable to adequately regulate the cryptocurrency sector, which leads to opportunists taking advantage.

Therefore, users should always proceed with extreme caution before making any investments and educate themselves as much as they can on the fundamentals of blockchain technology and cryptocurrencies before performing any transactions.

Let’s take a look at the top controversy surrounding Rocket Pool (RPL):

• Potential Smart Contract Failure – Utilizing DeFi comes with inherent risks, and individuals need to consider a host of factors before investing and using certain decentralized platforms. Rocket Pool is a decentralized network, and Rocket Pool contracts are used to facilitate the functionality of the protocol.
• Although the idea of liquid staking and running your own node is incredibly appealing, there is always a potential risk of smart contracts failing – this has happened to many protocols, and users should be aware of the risks involved when using DeFi.

How many Rocket Pool (RPL) Tokens are there?

At the time of writing, Rocket Pool (RPL) has a circulating supply of 16,191,801

The total supply of Rocket Pool (RPL) is 18,000,000

The max supply of Rocket Pool (RPL) is 18,000,000

Can Rocket Pool (RPL) be mined?

RPL tokens can’t be mined. The Rocket Pool network is dedicated to staking ETH and offers users staking rewards for depositing ETH and becoming node operators. Becoming a node operator is more cost-efficient than on other platforms.

Additionally, users can earn yields by staking RPL tokens. The current APY for staking RPL is more than 10%. The Rocket Pool price is also just below $10 – this makes staking RPL a relatively profitable way to earn.

Users are required to keep their RPL tokens in a digital wallet to connect to the Rocket Pool platform. This is a prerequisite for staking on the Rocket Pool platform.

Some centralized exchanges allow users to earn yields from staking their RPL tokens.

What is the market cap of Rocket Pool (RPL)?

The market cap of Rocket Pool (RPL) is: the total amount of coins in circulation x the current market price of RPL.

Rocket Pool (RPL) Market Cap = 16,191,801 RPL x $11.46 = $185 million (165th largest market cap)

RPL is currently one of the top 200 cryptocurrencies by market capitalization.

 

Biggest Competitors Of Rocket Pool (RPL)

The Ethereum network has grown exponentially in recent years, becoming the largest decentralized ecosystem in crypto. The amount of valuable DeFi products being built on the Ethereum Network is at an all-time high, and with the upcoming network upgrade, several platforms are offering ETH staking.

Rocket Pool’s biggest competitors are:

• Compound
• Lido

 

What Are The Future Plans of Rocket Pool (RPL)?

Rocket Pool is looking to grow the number of node operators on the platform and create more exposure for the protocol. As the Ethereum 2.0 upgrade creeps closer, there will be a lot of interest in ETH staking. Protocols like Rocket Pool will actively be working on providing ETH stakers with a profitable and secure experience.

The functionality of the protocol has been running smoothly to date, and there haven’t been any major issues. Rocket Pool will work hard to maintain its security; this is likely to attract more stakers because they’ll consider the platform credible and trustworthy.

 

Pros And Cons Of Rocket Pool (RPL)

Pros:

• Less ETH Required To Run a Node – Typically, users are required 32 ETH to run a validator node, but on Rocket Pool, individuals are only required to stake 16 ETH to become node operators.
• Simple UX – Many decentralized platforms are overly complex and difficult to use, but Rocket Pool is relatively straightforward. The platform has managed to onboard many users because of its simplicity.
• Competitive APY – Most platforms that offer ETH staking have very low APY percentages. Rocket Pool offers one of the highest APYs for staking ETH and also offers users that stake RPL more than 10%.
• Low Token Supply – The RPL token supply is very low compared to other cryptocurrencies, and many individuals consider this to be very positive for the project. When crypto projects have a low token supply, it typically indicates a higher level of scarcity for the token, which is an additional value proponent of the project.

Cons:

• Competition – Rocket Pool has managed to establish itself as one of the more well-known platforms that offer ETH staking, but it still faces significant competition from the likes of Lido and Compound.