Why Bernstein Remains Bullish on Robinhood
Investment firm Bernstein recently reiterated its outperform rating on Robinhood Markets, maintaining a price target of $160. The report shifts focus from traditional equity trading to the company's emerging strength in crypto infrastructure.
The Layer 2 Network Turning Profitable
The most striking finding in the report is that Robinhood's proprietary Layer 2 network, Robinhood Chain, has already reached profitability. Launched in early July, the network has demonstrated remarkable traction in just over two months.
- Total Value Locked (TVL) has reached approximately $15 billion
- DEX trading volume has surpassed $50 billion
More importantly, the network is generating substantial fee revenue. It currently produces between $2 million and $4 million in daily transaction fees. Over the past 15 days, cumulative fee revenue totaled around $33 million.
Outperforming Established Blockchains
To put this in context, Bernstein's report provides a comparison: during the same period, Solana's fee revenue was approximately $11 million, while BNB Chain's was about $9 million. This indicates that Robinhood Chain's profitability currently exceeds that of these established networks.
Analysts suggest this rapid path to profitability validates the technology's market fit and opens a significant revenue stream beyond Robinhood's core brokerage business. The network's operational efficiency, relatively low transaction costs, and deep integration with the company's main trading application appear to be key drivers behind its swift adoption.
The report signals a market reassessment of Robinhood's value proposition. While often viewed primarily as a retail trading platform, the profitable performance of its Layer 2 network demonstrates that its investments in blockchain infrastructure are beginning to yield tangible returns.