On August 10th, Coinbase Ventures, an investment fund affiliated with Coinbase, announced its investment in a leading Ethereum project called Rocket Pool, by purchasing RPL tokens. However, the specific amount of the investment was not disclosed by either party.
This investment is part of Coinbase’s “Onchain Summer” campaign, which coincides with the deployment of the mainnet for the layer2 Base.
Prior to this, Coinbase had collaborated with the co-founders of Rocket Pool, Darren Langley and Dave Rugendyke. They expressed their admiration for Rocket Pool’s goal and commitment to becoming one of the largest decentralized staking networks in the market.
Coinbase is also planning to participate in Rocket Pool’s Oracle DAO system and use a certain amount of ETH from its financial resources to maintain the operation of a specific number of validators.
The reason Coinbase Ventures chose to place its trust in Rocket Pool might be because it’s the leading liquid staking protocol on the Ethereum network, with over 780,000 ETH locked in the system and more than 3,100 validators worldwide.
Additionally, Rocket Pool is ranked 68th among the largest cryptocurrencies in the world, with a total market capitalization of 555 million USD. The network allows users to stake ETH while maintaining liquidity.
A notable feature of Rocket Pool is that it has the most node operators compared to other staking platforms in the market. This indicates a strong push towards decentralization.
Following the release of the news, the price of Rocket Pool surged by 8% to reach 29.33 USD, before retracing to 28.40 USD at the time of writing.
In the coming weeks, there’s a high possibility of RPL experiencing growth due to Coinbase’s investment. However, traders should still consider price volatility as Coinbase directly acquires RPL tokens.
Overall, this development showcases the growing interest of major players like Coinbase in Ethereum projects, underlining their potential and significance in the blockchain space.