Robinhood Chain has pulled in $431 million in protocol total value locked and nearly $400 million in stablecoin market cap in under three weeks, though memecoin trading drives the bulk of its early activity, according to FalconX.

The network, an Ethereum Layer 2 built on the Arbitrum tech stack that went live July 1, is processing roughly 6 million transactions a day and counting more than 250,000 daily active users, placing it among the most active chains by user activity and flipping Base by certain metrics on some days, FalconX Senior Crypto Market Strategist Martin Gaspar wrote Monday, citing data from Artemis.

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Cumulative DEX volume has edged toward $9 billion, but more than 80% of that has come from higher-risk memecoins, per data from Entropy Advisors that Gaspar also cited.

Robinhood Chain settles on Ethereum and pays Arbitrum 10% of net chain revenue as a standalone Layer 2 using Arbitrum's stack, while Ethereum Layer 1 has captured around 0.6% of fees in practice.

"Robinhood Chain appears positioned to onboard millions of its users onchain and explores key unlocks of crypto technology, especially with regards to RWA," Gaspar wrote, flagging a potential real-world asset-driven growth spur. "Early activity so far suggests strong user interest, although memecoin trading dominates DEX volumes," he added.

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RWA as the differentiator

The chain's stated focus on tokenized real-world assets stands as its potential edge, according to Gaspar.

Robinhood rolled out new Stock Tokens usable onchain as ERC-20 tokens, structured as tokenized debt securities issued by Robinhood Assets (Jersey) Limited and backed 1:1 by the underlying shares held with a U.S. custodian.

However, that activity remains nascent. RWA.xyz data cited in the primer puts Robinhood tokenized stocks at $14 million so far, against $851 million for Ondo and $481 million for xStocks, instruments that have been around far longer.

Still, Robinhood's customer base of nearly 28 million, largely retail, gives it a distribution advantage that could close that gap as the chain matures, Gaspar argued.

Lending and the Lloyd's insurance angle

Robinhood Earn, a decentralized lending product available via the main app, lets users lend USDG through Morpho-powered vaults supported by Steakhouse, Ethena, Spark, and Maple.

The product is insured through Lloyd's of London and RELM against losses tied to a cyber event or smart contract exploit — coverage FalconX described as rare for a DeFi offering and a contrast with Coinbase's uninsured Morpho vaults.

Earn advertises an estimated 7% APY for depositors, though the underlying Steakhouse USDG vault paid 1.9% as of July 20, suggesting Robinhood is subsidizing the difference.

Analysts cited by FalconX estimate a Merkl campaign paying the yield gap could sustain the 7% target up to roughly $2 billion in vault TVL.

Meanwhile, Gaspar stated that Morpho Markets on Robinhood Chain reached a total market size of $280 million as of July 19, with vault TVL around $194 million.

The primer landed as Bernstein raised its Robinhood price target to $160 from $130, keeping an Outperform rating and modeling prediction markets, perpetual futures, and Robinhood Chain at 18% of total revenue in 2027, reportedly.

"Ultimately Robinhood's stated focus for the chain is RWA, so tokenized stock market cap as well as functional onchain utility for these tokens could be key drivers of activity going forward," Gaspar wrote.