A blockchain built by a brokerage, yet driven mainly by users who aren't the brokerage's own app users—that's the most intriguing gap to emerge more than two months after Robinhood Chain's launch. Since going live on July 1, the chain's total value locked (TVL) has climbed to nearly $1 billion, with single-day DEX volume hitting $1.88 billion on Sunday, accounting for more than half of Uniswap's total trading volume.
In a note to clients on Monday, StoneX analyst Mark Palmer said Robinhood Chain's growth is "impressive by any measure," identifying four key drivers: brand effect, permissionless design, subsidized fees, and an emerging flywheel between meme coins and tokenized stocks.
CASHCAT, 10,000 Tokens, and Long.xyz
The clearest example of the brand effect is the viral surge triggered when Robinhood CEO Vlad Tenev followed the CASHCAT token account. The permissionless design shows up in the speed of on-chain token launches—Palmer notes that the Pons platform facilitates roughly 10,000 token listings per day, with the figure nearly hitting 25,000 on September 2 alone. As for the incentive mechanism, Robinhood subsidizes gas fees for wallet swaps of $5 or more.
The fourth factor—the flywheel between meme coins and stocks—is best exemplified by Long.xyz, a token launch platform built on the chain. Long.xyz pairs community tokens with Robinhood's tokenized stock (HOOD), creating a mechanism where demand driven by meme coins can spill over into trading activity for the tokenized stock, while the tokenized stock in turn provides a financial narrative for those meme coins, further reinforcing market interest. Palmer sees this as the core of the chain's flywheel effect.
Where's the Real Trading Volume Coming From
However, Palmer's report also highlights a contrast: Robinhood Chain's growth momentum currently doesn't primarily come from Robinhood's own app users. According to CoinDesk Research estimates, Robinhood App users account for only 1% to 2% of the chain's trading volume, with the vast majority of activity actually coming from trading terminals, Uniswap, and various token launch platforms—in other words, the chain currently looks more like a playground for crypto-native users than a successful migration of Robinhood's retail investors on-chain.
Stablecoin market cap is another key metric to watch. The market cap of stablecoins on Robinhood Chain surpassed $1 billion last week, up about 12% week-over-week and 72% over the past month. USDG accounts for 67% of that, with Ethena's USDe close behind at 30%.
Palmer had previously issued a "Buy" rating on Robinhood stock with a $170 price target, and this report serves as his response to common questions from investors.
