Rocket Pool jumps 23% after Binance announces launch of perpetual contracts

Rocket Pool (RPL)surged more than 23% as Binance announced a perpetual contract listing on Monday. At the time of writing on Tuesday, it trades slightly up at $11.74. This bullish event is further supported by RPL’s rising open interest, which indicates new buying activity in the market.

Rocket Pool perpetual contract now listed on Binance 

Rocket Pool, a decentralized liquid staking protocol for earning rewards on Ethereum holdings, was listed on Binance on Monday with the announcement of USD-Margined RPL Perpetual contracts. Due to this listing, prices increased by more than 23% on Monday.

The Binance listing of RPL Perpetual Contracts is a bullish outlook for Rocket Pool’s native token RPL. The Binance exchange's high liquidity and global reach enhance price discovery, reduce spreads, and boost visibility, which can attract both institutional and retail investors.

Furthermore, Coinglass’s data shows that the futures’ Open Interest (OI) in RPL at exchanges is also increasing. The OI indicates the total number of outstanding derivative contracts that have not been settled and whether money flows into the contract are increasing or decreasing.

Increasing OI represents new or additional money entering the market and new buying, which generally tends to support prices. When OI decreases, it is usually a sign that the market is liquidating, more investors are leaving, and the selling pressure increases.

The graph below shows that RPL’s OI increased sharply from $851,160 on Monday to $6.52 million on Tuesday, its highest level since mid-June. 

RPL Open Interest chart

Investors should remain cautious despite Rocket Pool's listing and increased buying interest. Institutional investor 1kx used this opportunity to sell 203,320 RPL tokens worth $2.37 million, according to data from Spot On Chain. The crypto investment firm has frequently been offloading RPL through Amber Group and still holds 315,835 RPL tokens valued at $3.62 million.