RPL, LDO, FXS come into play after SEC raid on staking-as-a-service providers
As reported yesterday, leading 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.
Ethereum LSD Providers Are Gaining Ground
So, one of the obvious beneficiaries of the news is RPL, the token of Ethereum’s (ETH) decentralized staking platform. Since becoming aware of the SEC’s intention to sanction all staking-as-a-service providers, the price of RPL has risen 37.5% within hours. Reaching $52 per token, RPL’s price action nearly allowed the asset to renew its all-time high.
As Search on the channel Reports, this performance of 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.
Another asset sector token from Ethereum’s liquid staking provider has also garnered substantial interest from some investors. This is LDO, the native token of the largest such platform. Thus, three different whales are reported to have cumulatively purchased over 400,000 LDOs during and after the SEC news.
Decentralized liquid staking derivatives providers may continue to ramp up despite sanctions against centralized competitors. At the same time, one should keep in mind the approach of the next major Ethereum update in March. Named Shanghai, the update is also expected to go into effect.