Robinhood Chain has built nearly $1 billion in liquidity by routing almost all of it through Uniswap, according to Standard Chartered. The arrangement is also reshaping UNI's token economics, roughly doubling the pace of token burns since late July.
Robinhood Chain has grown to nearly $1 billion in total value locked, which Standard Chartered analyst Geoffrey Kendrick called the fastest growth of any blockchain by that measure. Virtually all of that liquidity runs through Uniswap V2, V3 and V4.
The setup gives Robinhood access to established decentralized finance infrastructure as it scales its blockchain. As a result, the brokerage could potentially attract users and assets without having to build liquidity from scratch.
Robinhood traffic drives UNI burns higher
The partnership is also reshaping Uniswap's token economics. Protocol fees generated through Robinhood are now the largest source of UNI token burns, according to Standard Chartered.
Therefore, the UNI burn rate has roughly doubled since a Robinhood-linked fee switch activated on July 27, reaching an annualized pace of about $90 million. At UNI's current price of roughly $3.50 apiece, that pace would burn 25 million UNI tokens, or just over 4% of circulating supply, annually.
Robinhood Chain launched on July 1 with a focus on bringing real-world assets onchain. Adoption accelerated quickly, reaching 194,000 daily active users during its first week.
Wall Street eyes tokenization and prediction markets
Robinhood Chain is part of the brokerage's broader push beyond stock trading into crypto, prediction markets and tokenization. Bernstein analysts raised their price target for Robinhood stock to $160 per share, naming tokenization and prediction markets as key growth drivers.
HOOD shares were up more than 4% on Thursday, extending six-month gains to almost 30%. The expansion has coincided with mixed trends elsewhere in the business: Robinhood reported record revenue and earnings in the second quarter, even as crypto trading volumes and revenues declined.
Source: Cointelegraph.com News
Trading involves risk.
Risk Disclaimer
