- Trader redeemed 6,720 rETH and transferred the ether to Binance
- Rocket Pool is the second-biggest liquid staking protocol after Lido
The biggest daily redemption of ether (ETH) took place on Rocket Pool, a decentralized Ethereum-based staking service, on July 24. A trader redeemed over $12 million of rocketpool ether (rETH) before sending it to Binance, CoinDesk reported.
To "redeem" ether means to exchange or convert it back to another form of value or asset. In this case, the trader staked their ether to participate in the network's consensus mechanism and earn rewards. These rewards are essentially new ether that can be redeemed or used in different ways.
Rocket Pool has $1.88B in total value locked
Traders receive rETH, an ERC-20 token, and deposit ether into Rocket Pool's staking protocol in return. The staking platform lets users stake in fractions rather than require a 32-ether deposit to become a validator.
Data from Dune Analytics shows that the entity redeemed a total of 6,720 rETH on July 24 and transferred the ether to Binance.
Currently, Rocket Pool is the second-biggest liquid staking protocol after Lido with $1.88 billion in total value locked (TVL), according to data from DefiLlama.
Binance offered a better yield
The yield on Rocket Pool is currently 3.64% APR for regular staking and 8.62% for staking eight ether. Traders redeem ether when they are looking for a better yield or they want to free up liquidity. Currently, Binance's ether staking portal offers around 4.07% APR, which is probably the reason for the transfer.
Rocket Pool’s native token lost 27% in July
RPL, Rocket Pool's native crypto, has lost more than a quarter of its value this month, down from $38 at the beginning of July to under $30 at the time of writing. According to Coinmarketcap, the liveRocket Pool price todayis $29.97 with a 24-hour trading volume of $4.18 million. The RPL token is up 2.94% in the last 24 hours.
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