Robinhood (HOOD) Chain's Explosive Growth...TVL Nears $1 Billion in Two Months

▲ Robinhood (HOOD)/AI Generated Image

The Robinhood Chain has grown rapidly, nearing $1 billion in Total Value Locked (TVL) just over two months after its launch. StoneX has identified four factors as growth drivers, including brand power and the token issuance structure.

According to CryptoBasic on September 14 (local time), the Robinhood Chain has expanded rapidly since its launch on July 1. The network's TVL is approaching $1 billion, and decentralized exchange (DEX) trading volume recorded $1.88 billion on Sunday. StoneX analyst Mark Palmer analyzed that the Robinhood Chain currently accounts for more than half of Uniswap's total trading volume.

Palmer's first growth factor was Robinhood's large user base. CASHCAT was presented as an example of quickly gaining attention after Robinhood Markets (HOOD) CEO Vlad Tenev followed related accounts. The second factor is the open token issuance structure. Developers can issue tokens without Robinhood's approval, and approximately 10,000 tokens were created daily on Pons. On September 2, it surged to about 25,000.

The third growth driver is transaction cost support. Robinhood covered gas fees for swap transactions exceeding $5 from its own wallet, reducing users' transaction costs. The fourth is the structure connecting memecoins and tokenized stocks. On Long.xyz, a platform based on the Robinhood Chain, community tokens can be linked to Robinhood's tokenized stocks. Palmer explained that interest in memecoins increases linked tokenized stock trading, and the link to stocks, in turn, strengthens the justification for memecoin trading.

However, Robinhood Securities customers currently do not account for a significant portion of network activity. CoinDesk Research estimated that Robinhood app users generate only 1-2% of the total transactions on the Robinhood Chain. Palmer analyzed that most transactions occur on Uniswap, crypto trading terminals, and token launch platforms.

Liquidity metrics also expanded rapidly. The stablecoin market capitalization of the Robinhood Chain surpassed $1 billion last week, increasing by approximately 12% from the previous week and 72% from a month ago. Among all stablecoins, USDG accounted for 67% and USDe for 30%. Palmer, after issuing a "buy" rating and a target price of $170 for Robinhood stock and answering investor inquiries in a report, assessed that the early growth of the Robinhood Chain is strongly evident across various indicators.

[Key Summary of Article]

-The TVL of Robinhood Chain neared $1 billion just over two months after its launch, and DEX trading volume increased to $1.88 billion.

-StoneX cited the Robinhood brand, open token issuance, gas fee support, and the connection of memecoins and tokenized stocks as the four main growth drivers.

-Stablecoin market capitalization increased by 72% over one month, but transactions from Robinhood app users accounted for only 1-2% of the total.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*