Bernstein Projects Robinhood Blockchain Could Reach $160M in Yearly Revenue by 2028
Bernstein analysts forecast that increasing appetite for stock tokenization trading could push the Robinhood blockchain's yearly fee revenue to $160 million within four years.
Analysts from Bernstein anticipate that the blockchain network operated by trading platform Robinhood will produce up to $160 million in yearly fees by 2028, according to a Tuesday report that was provided to Cointelegraph.
The projection from analysts points to surging interest in tokenized equity trading on the platform, which has expanded to represent approximately 27% of the blockchain's overall trading volume, meanwhile trading of native memecoin pairs has declined to 36% of network transactions, a significant drop from 100% when the network launched on July 1.
According to Bernstein, the increasing interest in tokenized equities on the Robinhood blockchain stems from automated market-making liquidity pools on Uniswap that combine memecoins with tokenized stock assets and generate "reflexive demand" for both trading pairs.
Within just over two months following its debut, the Robinhood blockchain has risen to become the top blockchain network measured by daily fee generation, producing $2.13 million in fees over the previous 24-hour period, based on data from DefiLlama.
On July 20, Bernstein increased its valuation target for Robinhood (HOOD) stock to $160 from $130 per share while keeping its Outperform rating intact, projecting expansion in the company's prediction market operations and tokenized equity offerings. The company's Nasdaq-listed shares showed minimal movement at last check during Tuesday's premarket trading session, based on Yahoo Finance information.
Nevertheless, Robinhood's blockchain-based equity products have recently attracted criticism from Adam Aron, CEO of AMC Entertainment Holdings, who stated that the platform's tokenized equities offering economic exposure to AMC stock have no association with the company. Aron characterized the offering as "outrageous" and indicated that AMC will seek an investigation from its external securities counsel.