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Rocket Pool (RPL) Spikes Almost 40% Amid SEC's Attack on Staking, Here's What's Behind It

Fri, 02/10/2023 - 13:18
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Gamza Khanzadaev
RPL, LDO, FXS come into spotlight after SEC's raid on staking-as-service providers
Rocket Pool (RPL) Spikes Almost 40% Amid SEC's Attack on Staking, Here's What's Behind It
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As became known yesterday, major cryptocurrency exchange Kraken has agreed to shut down its cryptocurrency staking services as part of a settlement with the Securities and Exchange Commission. The incident, which sparked discontent in the crypto community, for all its negativity, nevertheless proved to be a trigger for double-digit growth in a certain asset class.

Kraken Trading Volume up 20% Despite SEC Crackdown: Here's What's Happening

Ethereum LSD providers gain traction

Thus, one of the clear beneficiaries of the news is RPL, the token for Ethereum's decentralized staking platform (ETH). Since the SEC's intention to sanction all staking-as-service providers became known, the price of RPL rose 37.5% in a matter of hours. Reaching $52 per token, RPL's price action almost allowed the asset to renew its all-time high.

RPL to USD by CoinMarketCap

As Lookonchain reports, this performance from the Rocket Pool token was preceded by an accumulation of more than $1.5 million by large holders from late January to February. Having accumulated large positions in RPL, the whales then sent them to staking.

Ethereum (ETH) Staked on Lido Finance Sets New Milestone: Details

Another token from Ethereum's liquid staking provider asset sector has also attracted substantive interest from some investors. This is LDO, the native token of the largest such platform. Thus, it is reported that three different whales cumulatively bought more than 400,000 LDO during and after the SEC news.

Decentralized liquid staking derivatives providers may continue to ramp up further amid sanctions against their centralized competitors. At the same time, it is worth keeping in mind the approach of Ethereum's next major update in March. Named Shanghai, the update is also expected to take effect.

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About the author

Financial analyst, trader and crypto enthusiast.

Gamza graduated with a degree in finance and credit with a specialization in securities and financial derivatives. He then also completed a master's program in banking and asset management.

He wants to have a hand in covering economic and fintech topics, as well as educate more people about cryptocurrencies and blockchain.