Pro
Pop, Lock, and Rocket
Key Insights
- Rocket Pool is currently a small player among Ethereum staking solutions. However, the perfect confluence of events is on the horizon for the protocol to grow.
- The total amount of ETH staked should grow after The Merge and the Shanghai upgrade, increasing the opportunity for all staking providers.
- Rocket Pool’s share should also increase as an upcoming upgrade makes it more capital efficient. Its competitors also face headwinds that may open up further opportunities for Rocket Pool to gain market share.
- Assuming growth in these two key metrics, the proportion of ETH staked and Rocket Pool’s share, we value RPL at 0.032–0.04 ETH, with an upside of 100–150% from its current price.
Rocket Pool is a protocol for liquid staking on Ethereum. It allows stakers to deposit Ethereum on the Beacon Chain to receive Rocket Pool ETH (RETH) in return. It is currently the most decentralized staking protocol, as it allows anyone to become a node operator. Our recent report “Revisiting Rocket Pool” covers the protocol’s design and upcoming upgrades.
Current Scenario
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Kunal previously worked in equity research and now considers himself a financial analyst in crypto. He specializes in valuation and bottom-up analysis for Layer-1 and DeFi protocols because he has yet to learn of a way to value NFTs.
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