Digital Broker Robinhood’s New Chain Boosts Ethereum-Based Network Arbitrum
Robinhood’s latest venture into the blockchain space has proven to be a success, with positive impacts extending to the Ethereum-based network Arbitrum.
The native token of Arbitrum (ARB) experienced a significant surge of 19% in value over the past 24 hours, making it the top-performing asset among the top 100 cryptocurrencies, as reported by CoinDesk. Meanwhile, Bitcoin (BTC) saw a modest increase of 1.5% to reach over $63,000, and Ether (ETH) rose by 0.5% amidst a relatively quiet market.
This surge in value coincided with the launch of Robinhood Chain, which operates on Arbitrum’s technology and was made available to the public a week ago. The chain processed over $568 million in daily trading volume on Wednesday and has already surpassed $350 million on Thursday, based on blockchain data from Entropy Advisors. The spike in trading activity was predominantly driven by memecoin transactions, with stablecoin balances on the network quickly exceeding $260 million within the first week.
This heightened activity is generating revenue for Arbitrum, with 10% of Robinhood Chain’s net protocol revenue being allocated back to the Arbitrum ecosystem, divided between the DAO treasury and the Developer Guild.
Robinhood’s Crypto Expansion
Robinhood officially introduced the chain during its recent event in London, marking a significant step in its broader crypto expansion strategy. The brokerage announced plans to offer tokenized U.S. stocks to customers in over 120 countries, introduced a DeFi-powered savings vault through the lending protocol Morpho, and outlined future endeavors to incorporate AI-powered trading and expand into additional asset classes within the crypto space.