Robinhood (HOOD) Stock: Chain Activity Slides 42% While Free Fee Promo Runs to December

TLDR

• Robinhood Chain daily transactions fell 42% to 6.2 million from mid-September.
• Spot trading volume dropped 21% in a week to $7.45 billion.
• Deposits still rose 2% to $1.04 billion, so money is staying put.
• Network fees fell 39% to about $65,000 a day.
• Robinhood will pay wallet swap fees until Dec. 31, which sets up the next test.

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Robinhood (HOOD) is watching its blockchain lose speed. Daily transactions on Robinhood Chain averaged 6.2 million from Oct. 2 to Oct. 8, down 42% from 10.8 million in mid-September.

The drop was 20% from the prior week alone. The figuFes come from CoinDesk calculations using growthepie data.

Daily active addresses fell 31% to about 322,000. That does not mean 31% fewer people, since one person can control many wallets.

Bots also play a part. Automated programs can create thousands of transactions on their own.

The chain launched in July to let people trade tokens, borrow and lend through apps tied to Ethereum. Plans include round-the-clock trading of tokens linked to stocks and funds.

Spot Trading Cools While Deposits Hold

Spot exchanges on the chain handled $7.45 billion over the week, down 21% from $9.46 billion. Uniswap accounted for about 77% of that.

September looked different. Fees had already collapsed 97%, but transactions were near their highs and weekly volume was still growing.

Money is not leaving, though. Deposits in lending and trading apps rose about 2% to $1.04 billion.

Stablecoin supply ticked up to roughly $1.10 billion. Traders seem to be parking funds on the chain and waiting, which is a patient way to lose momentum.

Perpetual futures are the exception. Seven-day volume reached about $7.35 billion, up 26%.

Robinhood added perpetual trading through Lighter when the mainnet launched in July. It sits alongside spot trading, lending and tokenized-stock apps.

Fees Shrink as Promotions Continue

Users paid about $65,000 a day in network fees, down 39% from the week before. The busiest day in early September brought in $8 million.

A Bernstein note last month said Robinhood keeps roughly nine-tenths of network fees. Fewer transactions mean less fee income for the company.

Arcus began handing out extra reward points on Oct. 1 for stock-token swaps made in Robinhood Wallet. Robinhood also pushed back the end of its fee promotion, which was due to expire Sept. 29.

The company will now pay network fees on wallet swaps over 50 cents until Dec. 31. That leaves under three months to get the $1 billion in deposits trading again before users cover their own fees.

The latest DefiLlama data shows about $46,000 in chain fees over the past 24 hours. Total value locked on the chain sits near $1.05 billion.