Robinhood Chain Hits $431M TVL Fast, But Memecoins Still Rule Early Usage

Woofun AI reports that Robinhood Chain, an Ethereum Layer 2 network built on Arbitrum technology, settled its operations directly on Ethereum’s Layer 1 following its July 1 launch.

Total Value Locked (TVL) on the network surged to $431 million within three weeks, while FalconX confirmed the chain processes nearly 6 million daily transactions.

Structurally, the protocol transfers 10% of its net revenue to Arbitrum, whereas the Ethereum mainnet captured 0.6% of generated fees.

Entropy Advisors data reveals that over 80% of cumulative volume on decentralized exchanges stems from memecoins, highlighting a disparity between usage and strategy. Martin Gaspar, Senior Crypto Market Strategist at FalconX, noted that while initial community interest is high, the chain’s strategic vision targets Real-World Assets (RWAs). To this end, the company introduced Stock Tokens, structured as debt tokens backed 1:1 by U.S.-custodied shares.

Per Woofun AI, the RWA segment remains nascent; RWA.xyz data shows tokenized stocks on Robinhood hold a $14 million market cap, compared to $851 million for Ondo. With nearly 28 million clients, the platform aims to accelerate adoption, supported by Robinhood Earn’s decentralized lending on the USDG stablecoin via Morpho vaults. As of July 19, the total Morpho market reached $280 million, with vault TVL at $194 million, underwritten by Lloyd’s of London and RELM against cybersecurity events or smart contract failures. Estimates indicate a Merkl incentive program could sustain a 7% APY until vaults hit $2 billion in TVL.

Bernstein raised Robinhood’s price target to $160, projecting that Robinhood Chain, alongside prediction markets and perpetual futures, will account for 18% of total revenue by 2027. This marks a significant pivot toward institutional-grade yield products.