Robinhood chain to generate $160M in annual fees by 2028: Bernstein

Trading platform Robinhood’s blockchain network is expected to generate as much as $160 million in annual fees by 2028, Bernstein analysts forecast in a Tuesday report shared with Cointelegraph.

The analysts cited growing demand for tokenized stock trading on the network, which grew to account for about 27% of the chain’s total trading volume, while native memecoin pairs trading decreased to 36% of network activity, down from 100% at launch on July 1.

Bernstein said the growing demand for tokenized stocks on the Robinhood chain is driven by automated market-making pools on Uniswap that pair memecoins with stock tokens and create “reflexive demand” for both sides.

In a little more than two months since launch, the Robinhood chain has emerged as the leading blockchain network by daily fees, generating $2.13 million in the past 24 hours, according to DefiLlama.

On July 20, Bernstein raised its price target on Robinhood (HOOD) stock to $160 from $130 per share and maintained its Outperform rating, forecasting growth in the platform’s prediction market business and tokenized equities. The company’s Nasdaq-traded shares were little changed at last look in Tuesday’s premarket activity, according to Yahoo Finance data.

However, Robinhood’s blockchain-based equities recently drew criticism from Adam Aron, CEO of $AMC Entertainment Holdings, who said the platform’s tokenized stocks providing economic exposure to $AMC shares have no affiliation with the company. Aron called the offering “outrageous” and said that $AMC will request an investigation from its outside securities counsel.