rETH vs ETH: What's the Difference and Which One Makes Sense for You?

When you stake ETH, you're not just locking it up—you're turning it into something new: rETH, a liquid staking token issued by Rocket Pool that represents your staked Ethereum and earns rewards over time. Also known as reth, it's not a separate coin, but a tokenized version of your staked ETH that you can still trade, send, or use in DeFi—unlike locked-up ETH on the Beacon Chain. This is the core difference: ETH is the native currency of Ethereum, while rETH is a claim on ETH that grows in value as rewards accumulate.

Think of it like owning a savings bond versus cash in your wallet. ETH is cash—you hold it, you move it, you use it. rETH is a bond that pays interest automatically. Every time the Ethereum network validates a block, your rETH balance increases slightly, even if the price stays flat. That’s because rETH tracks the value of your staked ETH, not the count. One rETH might start as equal to one ETH, but over time, one rETH could be worth 1.03 ETH, then 1.07 ETH, and so on. Meanwhile, your ETH balance never changes unless you buy or sell more.

This makes rETH useful for people who want to earn yield without giving up liquidity. You can use rETH in lending protocols like Aave or Curve to earn even more rewards, something you can’t do with regular staked ETH. But there’s a catch: rETH isn’t backed by the Ethereum protocol itself—it’s issued by Rocket Pool, a third-party staking service. That means you’re trusting their smart contracts, their node operators, and their security. If something goes wrong, you could lose value. ETH, on the other hand, is the base layer. No middleman. No extra risk. Just pure Ethereum.

Some users choose ETH because they want simplicity. Others pick rETH because they want to maximize returns without managing validators. Neither is right or wrong—it depends on what you’re trying to do. If you’re holding long-term and don’t need to move your assets, ETH staking is cleaner. If you’re active in DeFi and want to compound rewards, rETH gives you more tools. And while both are tied to Ethereum’s success, only one lets you trade, lend, or farm while you wait for your staking rewards to roll in.

Below, you’ll find real-world breakdowns of how rETH behaves in volatile markets, how Rocket Pool’s decentralized node network affects security, and why some traders treat rETH like a yield-bearing asset rather than just staked ETH. You’ll also see what happens when ETH’s price drops but rETH keeps growing—because rewards don’t care about market sentiment. These aren’t theoretical discussions. These are lessons from users who’ve lived through the ups and downs of liquid staking.