Robinhood Chain has reached nearly $1bn in total value locked (TVL) since launching on 1 July, with StoneX analyst Mark Palmer attributing its rapid growth to four main factors.
The chain’s daily decentralised exchange (DEX) volume reached $1.88bn on Sunday. It now represents more than half of all volume on Uniswap, Palmer said in a note to clients on Monday.
The analyst was responding to questions from investors after initiating a “buy” rating on Robinhood’s stock and setting a $170 price target. He described the performance of Robinhood Chain as “impressive by any measure” and identified the elements he believes have driven its early momentum.
The first is Robinhood’s established brand. Palmer also highlighted the viral marketing generated by the CASHCAT token after Robinhood chief executive Vlad Tenev followed its account.
A second factor is the chain’s permissionless structure, which allows developers to launch tokens without requiring approval. Pons is reportedly facilitating 10,000 token launches each day, including approximately 25,000 on 2 September.
Palmer also pointed to Robinhood’s incentive model. The company subsidises gas fees for wallet swaps worth more than $5, reducing the cost for users carrying out transactions on the chain.
The fourth element is what Palmer described as a flywheel linking memecoins with tokenised stocks. He cited Long.xyz, a token launchpad built on Robinhood Chain, as the clearest example of that relationship.
Long.xyz enables community tokens to be launched alongside Robinhood’s RHOOD tokenised stocks. In Palmer’s view, this allows demand driven by memecoins to generate activity around tokenised equities. At the same time, the equities give memecoins an underlying financial narrative that can help sustain interest.
Despite Robinhood’s ownership of the chain, its growth so far has largely been driven by crypto-native users rather than people using the company’s own app. CoinDesk Research estimates that Robinhood app users account for only 1%-2% of transactions on Robinhood Chain.
Most activity has instead come through trading terminals, Uniswap and token launchpads, Palmer said.
The stablecoin market on Robinhood Chain has also expanded sharply. Its total market capitalisation passed $1bn last week, representing a rise of about 12% compared with the previous week and 72% over the past month.
USDG makes up 67% of the stablecoin total, while Ethena’s USDe accounts for a further 30%.
