Bernstein Says Robinhood Chain Overtook Solana, BNB Chain in Fee Revenue, Sees 31% Upside

Robinhood’s layer-2 blockchain network has become a new revenue source for the company, generating more fee revenue than Solana and BNB Chain just over two months after its launch, according to Bernstein.

The Block reported on Sept. 8 that Bernstein maintained its Outperform rating on Robinhood Markets and set a $160 price target. That implies about 31% upside from the stock’s Sept. 5 closing price of $122.11.

In a report, a team led by analyst Gautam Chhugani wrote that “Robinhood Chain is now revenue itself,” underscoring the network’s rapid growth since its July 1 launch. Robinhood Chain’s daily transaction fees are estimated at $2 million to $4 million. Over the past 15 days, cumulative fees reached about $33 million, topping Solana’s roughly $11 million and BNB Chain’s about $9 million to rank first among blockchains on that measure.

The fee-sharing structure also favors Robinhood. Bernstein said about 90% of fees accrue to Robinhood, while Arbitrum, which provides the technology, receives about 10%. Ethereum gets less than 1% as a data fee.

The network’s growth metrics have also climbed quickly. Total value locked on Robinhood Chain has reached about $1.5 billion, while decentralized exchange trading volume has surpassed $50 billion. Tokenized stock holdings rose 14-fold to about $140 million from roughly $10 million over the past two months. As of Aug. 30, the chain ranked second behind BNB Chain, accounting for about 32% of weekly tokenized stock transfer value.

Stablecoin supply has also surged. Total stablecoin supply on Robinhood Chain, which was about $241 million in early July, has now reached about $1 billion. Of that total, USDG accounts for about 66% and USDe for about 33%.