Coinbase Ventures Buys RPL Tokens in Rocket Pool Investment, Aiming to Rival Lido’s Preeminence
On August 10, 2023, Coinbase Ventures made a strategic investment in Rocket Pool, a leading liquid staking protocol on Ethereum and a competitor to Lido. The exact sum of the investment has not been disclosed, but it involved the purchase of RPL tokens, Rocket Pool’s native token. At the time of the announcement, RPL’s price was $28.35 with a market capitalization of $556 million.
Rocket Pool allows individuals to fund new Ethereum validator nodes and earn rewards, even without holding the complete minimum of 32 ETH required for a solo validator node. Instead, Rocket Pool nodes only require a 16 ETH deposit per validator. The balance of the 32 ETH is sourced from the staking pool.
In addition to the investment, Coinbase also participates in Rocket Pool’s Oracle DAO and operates several hundred nodes using ETH from its corporate balance. This initiative aligns with Coinbase’s broader goal to scale Ethereum’s infrastructure in a decentralized way to onboard the next billion users.
Rocket Pool’s significance as the first truly decentralized Ethereum staking pool is emphasized by its large network of over 3,100 node operators and more than 780,000 ETH staked.
Previously, in January 2023, Coinbase Ventures expressed intentions to collaborate with Rocket Pool’s Oracle DAO, aiming to give Rocket Pool a competitive advantage over Lido.
Rocket Pool’s Onchain Data:
- Total Value Locked (TVL): $1.893 billion
- Market Cap: $555.64 million
- RPL Price: $28.45
- Fully Diluted Valuation: $559.04 million
- 24h RPL Volume: $15.77 million
- RPL Liquidity: $18.64 million
At the time of writing this article, RPL is trading at 28.33USD with a marketcap of $555.64 million.