Robinhood Chain Fees Collapse 97% Amid Cooling Memecoin Rush
On-chain data shows that fees on Robinhood Chain have collapsed by 97% since their early-September peak, despite transaction counts holding near records. This significant drop in fees is attributed to a cooling of the memecoin rush that had driven token launches and high gas costs.
The chain's fee income peaked at around $8 million from 13.1 million transactions on September 2, averaging 64 cents per transaction. However, by September 16, fees had fallen to approximately $230,000 across 8.9 million transactions, averaging just 2.6 cents each.
The decline in fees is largely due to a decrease in token launches and related activities, which accounted for the majority of the chain's revenue during the peak period. Pons, a token issuance platform, saw its trading volume drop by 37% from $616 million to $380 million between September 10-16.
Despite the decline in fees, the chain's decentralized exchanges (DEXs) continue to see high volumes, with Robinhood's DEXs handling around $13 billion in the seven days through September 16. Uniswap V3 volume on the chain more than doubled from $2.5 billion to $5.3 billion during this period.
Unipcs, a trader ranked first by all-time profit on the memecoin tracker FOMO, expressed optimism about the chain's future, stating that he expects users, trading volume, and fees to set new records before year-end.