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

• Rocket Pool price surges over 23% as Binance announces contract’s permanent listing.
• Coinglass data shows that RPL open interest is increasing, indicating that new purchases are taking place.
• Crypto investment firm 1kx deposited 203,320 RPL tokens worth $2.37 million, which may lead to a shift in market sentiment.

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

The Rocket Pool perpetual contract is 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 margin RPL perpetual contracts. Due to this listing, prices increased by more than 23% in the month.

Binance listing of RPL Perpetual Contracts is a bullish outlook for Rocket Pool’s native token RPL. Binance’s high liquidity and global coverage improve price discovery, reduce spreads and increase visibility, which can attract both institutional and retail investors.

Additionally, Coinglass data shows that futures open interest (OI) in RPL on exchanges is also increasing. OI indicates the total number of outstanding derivative contracts that have not been settled and whether the cash flows in the contract are increasing or decreasing.

OI growth is the entry of new or additional money into the market and new purchases, which generally tends to support prices. When OI falls, it is usually a sign that the market is liquidating, more investors are leaving and selling pressure is increasing.

The chart below shows that RPL’s OI rose sharply from $851,160 on Monday to $6.52 million on Tuesday, the 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 unloaded RPL via Amber Group and still holds 315,835 RPL tokens valued at $3.62 million.