Robinhood Chain Crushes Solana and BNB in Trading Fees

Robinhood's blockchain has been generating significant revenue through trading fees, outperforming Solana and BNB Chain in September. Over a 15-day period, Robinhood Chain collected approximately $33 million in fees, surpassing the combined earnings of Solana ($11 million) and BNB Chain ($9 million). This impressive performance has caught the attention of analysts at Bernstein, who maintain an Outperform rating on Robinhood Markets stock with a price target of $160.

The chain's success can be attributed to its fee retention model, where 90% of fees collected go directly to the company's bottom line. In contrast, most decentralized networks distribute fees among validators, stakers, and other participants in the ecosystem. Robinhood Chain's cumulative fees have reached around $39 million since its launch on July 1, with total value locked sitting at approximately $1.5 billion.

The chain's volume has been driven by tokenized stock holdings, which surged from $10 million to $140 million within two months. Memecoins and high-frequency decentralized trading have also contributed significantly to the chain's activity. To mitigate gas fees, Robinhood absorbed costs for wallet users through September 29.