Claims that Robinhood Chain would become a primary gateway bringing millions of new users into the Ethereum ecosystem remain unproven. Lorenzo Valente, Director of Digital Asset Research at ARK Invest, examined a series of on-chain contracts across the network and found that less than 1% of transactions passed through the 0x Settler contract directly linked to Robinhood Wallet.
Even when Valente broadened his calculations to include all unidentifiable transactions, the share of users connected to the Robinhood app reached at most 5%.
Flows Originate from GMGN and OKX
The majority of volume on Robinhood Chain flows from platforms like GMGN and OKX. Both provide traders access to operate on-chain without needing to download or use Robinhood’s official wallet. Valente concluded that the new network merely attracted existing “degens” or aggressive veteran traders to shift their playground, rather than onboarding a new group of retail users.
This data contradicts predictions by BitMine Chairman Tom Lee. Last August, Lee suggested that access to Robinhood’s 28.4 million funded user accounts could make their new chain a primary source of new Ethereum users. In reality, crossover traffic from those tens of millions of accounts has been virtually non-existent.
The EVM-compatible layer-2 network built on Arbitrum has actually processed high transaction volumes since launching on July 1, 2026. Uniswap recorded cumulative tokenized stock volume reaching $1 billion on the network by August 21. By September 4, collected network fees surpassed $4.59 million - an amount covered by Robinhood to subsidize its wallet users.
A Test in Late September
One key factor currently sustaining internal wallet user activity is gas incentives. Robinhood still fully subsidizes ETH-denominated gas fees for all transactions executed through its own app.
That zero-gas subsidy is scheduled to expire on September 29, 2026. The transition to paid gas will serve as a true resilience test for the ecosystem. If internal volume, which currently accounts for just 1%, dwindles further, the network risks becoming entirely reliant on external liquidity.
On paper, Robinhood supports its business with abundant liquidity. Its second-quarter report showed a year-over-year growth of 1.9 million new customers to 28.4 million funded accounts, driving total platform assets to $369 billion. Revenue for the same quarter also surged 32% to reach $1.3 billion. That solid balance sheet proves Robinhood has no shortage of sign-ups - they are simply struggling to migrate their retail customers on-chain.
Reported by crypto.news.
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Previously: Robinhood Chain Hits Record $6 Million Daily Fees - But 99% of Transactions Are Not from Its Own Users
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
