Altcoins, the other digital currencies besides Bitcoin, are getting more attention lately. They used to be overshadowed by Bitcoin, but now it looks like they’re catching up. Some big cryptocurrencies are moving in a similar way to Bitcoin, hinting at a possible overall rise in the altcoin market. One such coin is Rocket Pool. This article is all about What is Rocket Pool, the RPL price prediction for 2024. Let’s take a look at this in more detail.
What is Rocket Pool (RPL)?
Rocket Pool stands out as a decentralized Ethereum staking pool that rewards users with up to 4.33% Annual Percentage Rate (APR) for staking Ethereum 2.0 (ETH2). Users have two options: they can either join the Rocket Pool using its decentralized node operator network or run their own nodes with just 16 ETH.
If they choose the latter, they can earn commissions from staking ETH and receive extra RPL rewards by providing RPL collateral, leading to potential earnings of up to 6.36% APR for ETH and additional RPL rewards.
One notable feature of Rocket Pool is its liquid staking approach. Instead of increasing the initial staked collateral, users benefit from the rising exchange rate, avoiding taxable events. Additionally, Rocket Pool introduces smart nodes, a specialized node software enabling anyone to run a node on the network.
Losses incurred by poorly performing nodes are spread across the network, reducing the risk of individual users facing penalties. The pool emphasizes transparency and security through open-source and audited smart contracts, ensuring fully non-custodial staking and maximal decentralization.
It aims to reduce both capital and hardware requirements for staking on the Ethereum network. The project was founded in 2016 by David Rugendyke in anticipation of Ethereum transitioning from a Proof of Work to a Proof of Stake consensus mechanism. The goal is to enhance Ethereum’s decentralization and security.
In response to the growing challenges of entering the Ethereum network, Rocket Pool seeks to address issues that could negatively impact security and decentralization. One major concern is the increasing barriers to entry, hindering the network’s overall performance. The project recognizes the need to overcome these challenges to ensure a more robust and secure Ethereum network.
Rocket Pool tackles the problem of staking on the network, acknowledging that even if holders are willing to stake, they face the issue of losing liquidity. The Ethereum network requires a predetermined lock-up period before staked tokens become liquid again, impacting user experience. Rocket Pool aims to improve this by offering a solution that enhances liquidity and provides a more user-friendly staking experience.
The project introduces three native tokens, with RPL playing a crucial role in the project’s operation. Through these tokens, Rocket Pool seeks to address the challenges faced by Ethereum and contribute to a more efficient and decentralized staking ecosystem.
How does Rocket Pool work?
Rocket Pool allows users to maintain ownership of their funds, requiring a minimum of 0.01 ETH. Users can stake their funds through any node operator associated with the project. Becoming a node operator is open to anyone, with a minimum requirement of 16 ETH. This approach ensures equal opportunities for all potential node operators to attract users.
Smart contracts within the project facilitate the deposit process in Ethereum, allocating funds to node operators. The Beacon Chain interacts with these smart contracts, overseeing the issuance and tracking of various tokens. In the event of a node malfunction, it is automatically disabled and undergoes a reparative process before being eligible to receive new users. This mechanism adds a layer of security and reliability to the staking process on Rocket Pool.
How has the RPL price moved in recent days?
RPL/USD Daily Chart- TradingView
As of the latest update, the price of Rocket Pool (RPL) stands at $29.11, with a 24-hour trading volume of $6.98 million. The market cap is $579.74 million, and Rocket Pool holds a market dominance of 0.04%. Over the last 24 hours, the RPL price has decreased by -4.76%.
Rocket Pool achieved its all-time high on June 6, 2023, reaching $86.30. Conversely, its lowest price was recorded on May 17, 2019, at $0.027078. Following its all-time high, the lowest price since then was $16.96 (cycle low), and the highest price reached after the last cycle low was $34.13 (cycle high). Currently, the sentiment for Rocket Pool’s price prediction is bearish, while the Fear & Greed Index indicates a level of 74 (Greed).
The circulating supply of Rocket Pool is 19.92 million RPL out of a maximum supply of 19.11 million RPL. The yearly supply inflation rate is currently 93.75%, resulting in the creation of 9.64 million RPL in the last year. In terms of market cap, Rocket Pool is ranked #29 in the Ethereum (ERC20) Tokens sector.
What is the RPL Price Prediction for 2024?
Rocket Pool (RPL) has demonstrated a remarkable performance over the past year, showcasing a robust 52% price increase. This growth outpaces the majority, outperforming 58% of the top 100 crypto assets during the same period.
The token’s current standing above the 200-day simple moving average indicates a positive trend, further supported by 15 green days in the last 30 days, constituting 50% of the observed period. However, it’s crucial to note certain risk factors. While Rocket Pool has performed well, it lags behind Bitcoin and Ethereum, suggesting potential competition within the market.
Additionally, the token is currently down by -66% from its all-time high, signifying a potential area for improvement. Although boasting medium liquidity based on market cap, investors should remain vigilant.
Furthermore, the yearly inflation rate of 93.75% raises concerns about potential dilution of value over time, demanding a cautious approach. As Rocket Pool continues to navigate these dynamics, investors may find opportunities in its growth trajectory but should be mindful of the associated risks.
Is RPL a Good Buy?
RPL/USD Daily Chart- TradingView
As of today’s classical pivot point (P1) at $30.57, Rocket Pool presents support levels that investors should monitor. These include the first support level at $30.02, followed by $29.16, with the strongest support identified at $28.61. These levels signify points where the price may encounter buying interest and potential upward bounces.
Conversely, resistance levels indicate points where selling interest and potential downward corrections may occur. For Rocket Pool, the first resistance level stands at $31.42, followed by $31.98, and the highest resistance level at $32.83. These levels offer insights for investors to gauge potential price movements and make informed decisions based on the observed support and resistance dynamics. It’s essential for traders to closely monitor these levels to navigate the market with a more strategic approach.
The forecast for Rocket Pool (RPL) based on the technical indicators suggests a potential trading range between $24 and $90 in the coming year. This projection implies a substantial increase of more than 200% from its current value, anticipating a rise to $90 if it achieves the higher target in 2024.
Buy RPL with Bitget with the CHEAPEST Fees
Bitget stands out as a reliable crypto exchange. It provides a user-friendly interface, making it easy for both beginners and experienced traders to navigate and make transactions at the lowest fees on the market. To get started with Bitget, you need to create an account, complete the necessary KYC procedures, and then you can begin trading a variety of altcoins available on the platform.