Robinhood’s blockchain network could generate as much as $160 million in annual fees by 2028, according to a Tuesday Bernstein report shared with Cointelegraph.
The analysts tied that projection to rising demand for tokenized stock trading on the network. They said tokenized equities now make up about 27% of total trading volume on the Robinhood chain, while trading in native memecoin pairs has dropped to 36% of network activity from 100% when the chain launched on July 1.
Tokenized stocks are taking a larger share of activity
Bernstein said the increase in tokenized stock demand is being driven by automated market-making pools on Uniswap that pair memecoins with stock tokens. In the firm’s view, those pools create “reflexive demand” for both sides of the trade.
A little more than two months after launch, the Robinhood chain has become the top blockchain network by daily fees, the report said. DefiLlama data cited by the analysts showed the network generated $2.13 million in fees in the past 24 hours.
Bernstein also lifted its price target on HOOD
On July 20, Bernstein raised its price target on Robinhood (HOOD) to $160 per share from $130 and kept its Outperform rating. The firm said it expects growth in Robinhood’s prediction markets business and its tokenized equities segment.
Yahoo Finance data showed Robinhood’s Nasdaq-listed shares were little changed in Tuesday premarket trading at last check.
AMC CEO pushes back on tokenized share exposure
Robinhood’s blockchain-based equities offering has also come under criticism from Adam Aron, chief executive of AMC Entertainment Holdings. Aron said the platform’s tokenized stocks that provide economic exposure to AMC shares have no affiliation with AMC.
He called the offering “outrageous” and said AMC would ask its outside securities counsel to investigate the matter.