Robinhood Chain's Early Momentum Is Being Driven By Meme Coins, Not Tokenized Stocks

Robinhood spent implicit a twelvemonth gathering a blockchain astir the thought that users privation to commercialized tokens tied to the world's astir invaluable companies. But since Robinhood Chain debuted 2 weeks ago, integer assets with cute pictures and comic names person led the charge.

Although the Ethereum layer-2 scaling web offers users a mode to commercialized tokenized versions of firms similar Apple and Nvidia, archetypal enactment connected Robinhood Chain has been fueled by involvement successful meme coins, analysts astatine concern slope Bernstein shared successful a Monday note.

"Early trading volumes connected Robinhood Chain were led by meme coins, but [it] shows beardown liquidity and traction from crypto-native traders," they wrote, portion emphasizing the retail brokerage's increasing absorption connected products and services tied to real-world assets.

The analysts noted that the web has rapidly go a top-five destination for trading assets on-chain, facilitating $3.1 cardinal successful cumulative trading measurement implicit the past 7 days via decentralized exchanges specified arsenic Uniswap and PancakeSwap.

Meanwhile, astir 65,000 users person gained vulnerability to $13 cardinal successful alleged banal tokens, which are disposable successful implicit 120 countries but not successful the U.S., the analysts added. 

On Monday, astir 25,000 wallets held Cash Cat, according to Blockscout. At a marketplace headdress of $150 million, the token modeled connected a representation of a feline is the astir invaluable meme coin connected the network, based connected marketplace cap. Other names see Wen Lambo, Tendies, and Hoodrat.

Bernstein referenced Robinhood's efforts to propulsion idiosyncratic enactment beyond tokenized assets, focusing connected decentralized lending done a concern with DeFi protocol Morpho and perpetual futures done an statement with DEX Lighter.

On Monday, shares of Robinhood changed hands astir $111, according to Yahoo Finance. Over the past month, the company's banal terms has climbed 19%, astir erasing year-to-date losses that person coincided with a downturn successful the crypto market.

Strategy Pads Cash Reserves to $3 Billion, Skipping Bitcoin Buy for Third Week

BitMine Chairman Tom Lee—an capitalist successful Dastan, the genitor institution of Decrypt—argued connected X this play that the aboriginal occurrence of Robinhood Chain has bolstered Ethereum's cognition arsenic money, due to the fact that transaction fees are denominated successful the integer asset.

Nearly a twelvemonth ago, Robinhood CEO Vlad Tenev described tokenization arsenic "the biggest innovation successful superior markets successful implicit a decade" connected an net call, portion referencing tokenization astir a twelve times.

At the time, helium predicted that "criticisms astir crypto assets being benignant of similar not tied to thing of cardinal worth oregon mostly meme-based" would spell distant due to the fact that of the technology's imaginable to nexus tokens to assets with cardinal utility.