Robinhood Chain's Growth is Accelerating

From Launch to $1 Billion in Under Three Months

Robinhood Chain has posted some of the fastest early growth numbers of any Layer 2 network on record. The chain's TVL has climbed to nearly $1 billion since its July 1 launch, while daily DEX volume reached $1.88 billion on Sunday. Robinhood Chain has delivered the fastest early growth of any Layer 2 during this cycle, with daily DEX volume exceeding $1.5 billion and applications briefly generating more revenue than Ethereum applications in a single day. Most networks take years to reach those levels.

Its daily DEX volume accounts for more than half of all volume on Uniswap, according to StoneX analyst Mark Palmer, writing in a note to clients. On the stablecoin front, the stablecoin market cap on Robinhood Chain crossed $1 billion, up roughly 12% week over week, with USDG holding the largest share.

Four Factors Behind the Surge

Robinhood Chain's rapid growth has been driven by several factors, including the brokerage's strong brand, its permissionless design, subsidized gas fees, and a growing flywheel between memecoins and tokenized stocks, according to StoneX analyst Mark Palmer.

On the brand side, Robinhood's brand benefited from the viral marketing effect of the CASHCAT token after CEO Vlad Tenev followed its account. The permissionless structure has also been a significant draw, with token issuance platform Pons enabling thousands of new tokens to launch on the chain each day. Meanwhile, Robinhood covers gas fees in its wallet for swap transactions above $5.

Palmer described a flywheel in which interest in memecoins drives demand for tokenized stocks, while those stocks provide a financial narrative that reinforces interest in associated community tokens, giving Robinhood Chain exposure to both speculative token trading and tokenized traditional assets.

One notable caveat concerns where the activity is actually coming from. CoinDesk Research estimates Robinhood app users account for only 1% to 2% of Chain transactions, while most activity has come through trading terminals, Uniswap, and launchpads. The biggest part of Robinhood's potential advantage has yet to fully arrive: its own retail users.

Looking further ahead, StoneX modeled that Robinhood Chain could generate $980 million in revenue by fiscal year 2029 at an 85% margin. Palmer has set a Buy rating and $170 price target on Robinhood's stock, implying about 45% upside from the stock's closing price at the time of the note.

Sources:
The Block: Robinhood Chain's rapid growth is being driven by 4 key factors, analyst says
The Block: StoneX sees 45% upside for Robinhood, points to accelerating Layer 2 chain
Chainstack: What's behind Robinhood Chain's growth: TVL, revenue and RPC