Robinhood Chain Surpasses $430 Million in TVL as Memecoins Drive Early Activity

Robinhood Chain has attracted $431 million in protocol total value locked and nearly $400 million in stablecoin market cap within its first three weeks of operation, though memecoin trading currently accounts for the vast majority of activity on the network.

Strong Early Usage Numbers

The Ethereum layer-2 network, built on Arbitrum’s technology stack, launched July 1 and is now processing roughly 6 million transactions daily with more than 250,000 daily active users. FalconX senior crypto market strategist Martin Gaspar noted the chain has ranked among the most active networks by user activity, at times surpassing Base on certain metrics, based on data from Artemis.

Cumulative decentralized exchange volume on the network has approached $9 billion, but data from Entropy Advisors shows more than 80% of that volume has come from memecoin trading rather than other asset types. Robinhood Chain settles transactions on Ethereum and pays Arbitrum 10% of net chain revenue as part of its standalone layer-2 arrangement, while Ethereum’s base layer has captured roughly 0.6% of fees generated so far.

Tokenized Assets Seen as Long-Term Advantage

Robinhood has introduced Stock Tokens that function as ERC-20 tokens, structured as tokenized debt securities issued through Robinhood Assets Jersey Limited and backed one-to-one by underlying shares held with a US custodian. That segment remains small for now, with RWA.xyz data showing Robinhood’s tokenized stocks at roughly $14 million, compared to $851 million for Ondo and $481 million for xStocks.

Robinhood Earn, a decentralized lending feature built into the main app, allows users to lend USDG through Morpho-powered vaults supported by Steakhouse, Ethena, Spark and Maple. The product carries insurance coverage from Lloyd’s of London and RELM against losses from cyber incidents or smart contract exploits, coverage FalconX described as uncommon for decentralized finance products and notably different from Coinbase’s uninsured Morpho vaults. While Earn advertises an estimated 7% annual yield, the underlying Steakhouse USDG vault paid just 1.9% as of July 20, suggesting Robinhood is covering the difference itself.