The partnership between Robinhood and Uniswap is helping the brokerage rapidly build liquidity in its new blockchain. Standard Chartered believes this could remove the main obstacle to attracting users and assets.
In a recent note, Standard Chartered analyst Geoffrey Kendrick reported that the Total Value Locked (TVL) on Robinhood Chain has reached nearly $1 billion. He stated this is the fastest growth rate among all blockchains. Kendrick noted that Uniswap, through its V2, V3, and V4 versions, is providing virtually all of Robinhood Chain's liquidity.
This structure gives Robinhood access to developed DeFi infrastructure as the blockchain scales and strengthens the company's ability to attract users without the need to build liquidity from scratch.
The partnership is also significantly impacting Uniswap's tokenomics. According to Standard Chartered, the protocol's fees from operations on Robinhood have now become the largest source of $UNI token burning.
After the activation on July 27 of the fee redirection mechanism related to Robinhood, the $UNI burn rate approximately doubled, reaching an annualized rate of about $90 million. With $UNI's current price around $3.50, this translates to an annual burn of 25 million $UNI tokens—slightly over 4% of the circulating supply.
Sources of Robinhood Chain liquidity. Source: Standard Chartered
Robinhood Chain launched on July 1 with a focus on bringing real-world assets on-chain. Adoption accelerated quickly after launch: the number of daily active users reached 194,000 in the first week.
Related: Robinhood Chain Attracted Over $70 Million in ETH via Bridge in First Week
Robinhood's Crypto Business Expands Through Tokenization and Prediction Markets
Robinhood Chain is part of the brokerage's broader strategy to move beyond traditional stock trading: Robinhood is expanding its activities in crypto, prediction markets, and tokenization. The strategy has caught Wall Street's attention: analysts at Bernstein raised their price target for Robinhood (HOOD) stock to $160 per share and named tokenization and prediction markets as key growth factors.
On Thursday, HOOD stock rose more than 4%, extending its six-month gain to nearly 30%. Source: Yahoo Finance.
The business expansion coincides with mixed performance in Robinhood's crypto business. The company reported record revenue and profit in the second quarter, despite a decline in crypto trading volumes and revenue.
Related: Robinhood in Talks with Crypto.com About Prediction Markets: WSJ
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