Robinhood Chain slowdown spreads from fees to trading as transactions fall more than 40%
Reported by CoinDesk · AI-assisted summary by ChikoCorp AI News Desk
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Summary
Robinhood Chain experienced a significant slowdown with daily transactions dropping 42% from mid-September to early October and daily active addresses falling 31%. Weekly spot trading volume also declined 21%, while deposits on the chain remained steady above $1 billion and perpetual futures volume increased by 26%. Robinhood is continuing to cover network fees on token swaps above 50 cents through December 31 in an effort to boost activity.
Why it matters
The source implies this slowdown could impact Robinhood’s fee revenue since it retains roughly 90% of network fees, which have decreased alongside transaction volume. The ongoing fee coverage promotion aims to revive usage, but it remains to be seen if activity will sustain once fees are no longer subsidized after year-end.
Key context
Robinhood Chain was launched in July to facilitate token trading, borrowing, and lending connected to Ethereum, including round-the-clock stock- and fund-linked tokens. Network fees are paid on each transaction, supplemented by app fees, with Robinhood capturing most network fees. Previously in September, fees collapsed 97% but transactions and trading volume were still high; now both have declined.
Key numbers and entities
Robinhood Chain averaged 6.2 million daily transactions (down 42%), 322,000 active addresses (down 31%), $7.45 billion weekly spot trading volume (down 21%), and $1.04 billion in deposits (up 2%). Perpetual futures trading volume rose 26% to approximately $7.35 billion. Users paid about $65,000 daily in network fees during Oct. 2–8, down 39% from the prior week.
What remains unclear
The source does not establish the specific reasons behind the transaction decline or how user behavior might change once Robinhood ends its fee coverage promotion on December 31. It also does not clarify whether the reduced number of active addresses equates to fewer unique users or shifts in address management practices.