An Analysis Of Recent RocketPool Activities

The purpose of this article is to analyze inflows and outflows to RocketPool for the past three months. Are there any trends emerging near the ETH 2 merge? How did the average deposit size change compared to historical performance?

What is RocketPool?

Rocket Pool is an Ethereum 2.0 staking pool that enables users to stake their cryptocurrency. In addition to empowering the decentralization of the Ethereum ecosystem and increasing the security of it, the protocol aims to reduce both the capital and hardware requirements for staking on ETH 2.0. Towards this end, Rocket Pool facilitates trustless stake on an Ethereum node by letting users choose their node operator anonymously.

RocketPool is a decentralized ETH2 Staking application. Using RocketPool, users can either stake ETH or stake ETH and run a node. Users deposit ETH and mint rETH tokens. For users only interested in staking, the minimum deposit is 0.01 ETH and the rETH tokens are liquid. For users interested in running a node and staking, the minimum deposit is 16 ETH, but better rewards are received.

As we are all know The Ethereum merge is again postponed to June . We can see that from the below tweet.

By Ethereum Merge , Ethereum makes the transition from proof-of-work (PoW) to proof-of-stake (PoS). The proof-of-work method of consensus on the blockchain relies on the lockup of a staker’s Ethereum. Computing power is required to secure blockchain consensus. This is done by people (miners) who secure the network. The Merge allows for decentralization and security by requiring a minimal number of nodes and reducing the amount of work required to run nodes Compared to PoW, PoS requires 99% less energy Through scalability, it opens the possibility of sharding and 100k TPS in the future.

From the graph, we can see how many inflows and outflows have occurred to RocketPool in the last three months. There is a maximum number of users coming to Rocketpool than before in March 2022. However, in the future, we will notice a decrease in new users.  It is, however, showing an upward trend.

The following graph shows the percentage of users coming to and leaving Rocketpool during the past three months. 

From the graph, we can see how many inflows and outflows transactions have occurred to RocketPool in the last three months. There we can see a maximum number of transactions on Rocketpool during March 2022. However, in the future, we will notice a decrease in inflow transactions.  It is, however, showing an upward trend.

Here is a graph showing the percentage of transactions entering and leaving Rocketpool over the last three months. In Rocketpool, over 92% of all transactions are inflow transactions. 

On the graph, we can see how many Ethereum inflows and outflows have occurred to RocketPool in the last three months. During March 2022, there was the greatest Ethereum inflow onto Rocketpool. More Ethereum will be withdrawn from the market in April 2022 than before. This may be due to the postponement of the Ethereum Merge release. 

From the below graph we can see the netflow of Ethereum to Rocketpool . Net Flow Of Ether reached a maximum of 4.33K on March 10, 2022. This will be due to Ethereum merge release in the very near future. On April 14,2022, the Net flow of ETH has been recorded as -379.53K. That’s because the Ethereum merge has been postponed. With this postponed announcement, users may be removing their staked Ethereum. This shows a decreasing trend in the Net Flow Of ETH.

From the below graph we can see the average inflow and outflow of Ethereum by using RocketPool service provider. The average outflow ETH is in increasing trend . And the average inflow ETH is in decreasing trend.

According to the average inflow and outflow of ethereum to Rocketpool for the last three months, the average outflow of ethereum is greater than the average inflow of ethereum. Therefore, the inflow of ethereum is lower than the outflow of ethereum. Recently, however, ethereum outflow has increased. Therefore, a larger number of outflow ethereum transactions was observed recently than before. This could be attributed to the announcement of the delayed release of Ethereum Merge. 

We can see in the graph below the average inflow and outflow of ETH to Rockepool in percentage terms for the last 3 months. An average amount of ETH inflow was larger than the average amount of ETH outflow in Feb 2022. There might be a reason for this, such as we are nearing the ETH 2 merge, and many inflows were happening in this urgency. Suddenly we can see that the average outflows have increased from March 2022 onward. It could be an effect of the Ethereum Merge release being postponed. 

Observations

Based on the above analysis,

  • March 2022 will see an increase in the number of users coming to Rocketpool. However, we will see a decrease in new users in the future. 
  • Rocketpool had the highest number of transactions during March 2022. There will be a decrease in the amount of inflow transactions in the future, however. 
  • Rocketpool received the greatest Ethereum inflow in March 2022. In April 2022, Ethereum will be withdrawn from the market in greater amounts than before. Perhaps this is the result of the Ethereum Merge release being postponed. 
  • Additionally, with the postponed announcement of Ethereum Merge, users may be removing their staked Ethereum. It seems that the Net Flow of Ethereum is going down.
  • Based on average ethereum inflows and outflows for the past three months, ethereum outflows are greater than ethereum inflows.
  • In February 2022, there was an average amount of ETH inflow larger than the average amount of ETH outflow. There might be a reason for this, such as we are nearing the ETH 2 merge, and many inflows were happening in this urgency. As of March 2022, we can see that outflows have become more frequent. Could be an effect of the Ethereum Merge release being delayed. 

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