HOOD Soars as Tokenization and Prediction Markets Fuel Crypto Growth
Robinhood Markets Inc.'s (NASDAQ:HOOD) crypto strategy is evolving from trading-focused to broader tokenization and financial infrastructure, analysts at Bernstein say.
The firm's next major growth drivers include Robinhood Chain, which has generated over $12 billion in decentralized exchange volume since its launch, as well as tokenized equities, Bitstamp, and Robinhood Earn. The latter has attracted more than $200 million in deposits.
Despite weaker trading activity during the second quarter, CEO Vlad Tenev says recently launched products could support long-term crypto growth.
The analysts maintained an Outperform rating and a $160 price target on HOOD, implying an approximate 85% upside from current levels. They also highlighted the rapid growth of Robinhood's prediction market business, which processed over 3.5 billion contracts in Q2 and generated around $17 million in revenue.