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HOOD stock has bounced back in the past few days, helped by the ongoing crypto market rebound. It is also benefiting from the soaring activity on Robinhood Chain, one of the fastest-growing players in the crypto industry. It jumped to $108.3, its highest level since July 16.
Robinhood Chain Metrics Are Soaring
Robinhood Chain, a relatively new layer-2 network, has become one of the fastest-growing players in the industry. Data show that its activity in the stablecoin and decentralized finance (DeFi) markets is booming, even as the sector continues to slow.
Robinhood Chain has accumulated a total value locked (TVL) of $613 million. It started the month with $313 million in assets. The biggest players in its ecosystem are dApps like Morpho Blue, Steakhouse Financial, Uniswap, and Lighter.
More data show that the amount of stablecoins on the chain has jumped to $739 million, with USDC the largest contributor. This is important because Robinhood positioned the chain as a crucial player in the stablecoin and real-world asset (RWA) tokenization industries.
The amount of RWA assets locked in the ecosystem has grown to over $136 million, a figure that will likely continue growing. Most importantly, DEX networks on the chain processed over $667 million in transactions in the last 24 hours. These numbers mean that more developers and traders are moving to the chain.
If Robinhood Chain succeeds in the long term, it will beat substantial odds since many layer-2 and layer-1 chains don’t succeed. For example, Unichain, the layer-2 chain launched by Uniswap, experienced initial success before plunging. Others, including Kraken’s Ink, Monad, and Berachain, have also lost traction.
Rising Crypto Prices May Benefit Robinhood Markets
Another catalyst for the HOOD stock price is that Bitcoin and other cryptocurrencies have continued to rise. Bitcoin crossed the important resistance level of $80,000 on Monday. Other top cryptocurrencies like Ethereum, XRP, and Solana have all bounced back in the past few days.
The ongoing performance of the crypto market is important because Robinhood has become a major player in the industry. It allows people to trade cryptocurrencies on its platform. It also spent $200 million to acquire BitStamp, a company regulated in key markets such as the US, the EU, and the UK.
A rebound in crypto prices will benefit its business because it has been one of the top laggards. For example, the most recent results showed that its notional crypto volumes dropped to $40.4 billion from $82.4 billion in the fourth quarter of last year. It has been one of its weakest businesses in the past few quarters.
Yahoo Finance data shows that Robinhood will make about $1.35 billion in revenue this quarter, a 5.7% increase from the same period last year. A sustained crypto market rebound will push its revenue higher than expected. These metrics likely explain why analysts remain optimistic about the company, with Bernstein having a target of $160.
Robinhood Stock Price Technical Analysis
The daily chart shows that the HOOD stock has been in a strong upward trend in the past few months. It has formed a series of higher highs and higher lows. Along the way, the stock has formed a megaphone pattern, a common bullish continuation sign.
The stock has moved above the 200-day Exponential Moving Average (EMA), a sign that bulls remain in control. Therefore, the path of the least resistance for the stock is higher, with the next key level to watch being at $120. A move above that level will point to further gains.
