Ethereum's Liquidity Staking Protocol Rocket Pool is on the brink of a massive transformation with the upcoming Dencun upgrade. As a community advocate emphasizes, this change is primarily due to the improvements that the Houston upgrade will bring.
The Eyes on Dencun Upgrade
In a recent post on X, the advocate explains that the Dencun upgrade, scheduled to go live in mid-March 2024, will pave the way for the implementation of the Houston upgrade. The Houston upgrade, in turn, aims to enhance the scalability and efficiency of Rocket Pool.
The Dencun upgrade must be successfully implemented first for the Houston improvements to take effect and enhance the performance of Rocket Pool.
This hard fork update requires all Ethereum node operators to update their software. Once the network is updated, developers expect transaction costs, especially in Layer-2 networks, to significantly decrease.
EIP-4788 and why it is crucial for Rocket Pool
The Dencun upgrade will also bring a crucial improvement: Ethereum Improvement Proposal (EIP) 4788. This proposal aims to optimize communication between the execution layer, where all smart contracts and transactions occur, and the consensus layer, which includes validators like Rocket Pool.
A key aspect of this proposal is to allow the execution layer to access information from the consensus layer without the need for third-party oracles, improving the security and efficiency of the mainnet.
With the activation of the Houston upgrade, Rocket Pool users can expect a range of improvements to enhance their experience. Once Houston goes live, the protocol will automatically reduce the minimum staking amount of ETH, allowing more users to stake. Additionally, the introduction of a delegated mini-pool contract will streamline the distribution of fees and rewards. In Rocket Pool, a mini-pool is a virtual pool that combines all ETH from stakers.
Over time, the activation of EIP-4788 will enable Rocket Pool to drive innovation in ETH staking. Looking at the price chart, this expectation has been well received.
RPL Price Trends
So far, RPL, the native token of the liquidity staking platform, has surged. On March 6, the token surpassed the February high of $33. Traders anticipate that bulls will build on the recent gains and drive the token towards the January 2024 highs of around $40.
As of March 7, the token has risen by nearly 110% from its October 2023 lows. However, RPL still needs to recover from the bear market in 2022. In April 2023, the token surged to as high as $65.
Disclaimer: The article is for educational purposes only. It does not reflect NewsBTC's opinion on whether investments should be bought, sold, or held, and investments naturally carry risks. We recommend conducting your own research before making investment decisions. The use of the information provided on this website is at your own risk.
