HOOD stock has bounced back over the past few days, climbing to $109.7 as the stock and cryptocurrency markets rebounded. Shares reached $108.3, their highest level since July 16. The recovery has been helped by the ongoing rebound in crypto prices and by soaring activity on Robinhood Chain, one of the fastest-growing players in the crypto industry.

Robinhood Chain Metrics Are Soaring

Robinhood Chain, a relatively new layer-2 network — a class of blockchain built on top of existing infrastructure to process transactions faster and at lower cost — 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 broader sector continues to slow.

The network has accumulated a total value locked (TVL) of $613 million, a record high, according to DeFiLlama. TVL measures the value of assets deposited in a chain's protocols and is one of the most widely used gauges of ecosystem adoption. It started the month with $313 million in assets, meaning deposits have nearly doubled in a matter of weeks. The biggest players in its ecosystem are dApps such as Morpho Blue, Steakhouse Financial, Uniswap, and Lighter.

Further data show that the amount of stablecoins on the chain has jumped to $739 million, with USDC the largest contributor. Stablecoins — digital tokens pegged to assets such as the US dollar — act as the settlement currency for much of on-chain trading, so their footprint on a network is often read as a proxy for real usage. This growth is significant because Robinhood has positioned the chain as a crucial player in the stablecoin and real-world asset (RWA) tokenization industries, the business of representing traditional financial assets as blockchain tokens. The amount of RWA assets locked in the ecosystem has grown to over $136 million, a figure the report expects will likely continue growing. Most notably, DEX (decentralized exchange) networks on the chain processed over $667 million in transactions in the last 24 hours. Taken together, these numbers indicate that more developers and traders are moving to the chain.

If Robinhood Chain succeeds in the long term, it will have beaten substantial odds, since many layer-2 and layer-1 chains do not succeed. The field is crowded, with rival networks competing for much the same pool of liquidity, developers, and traders. Unichain, the layer-2 chain launched by Uniswap, experienced initial success before plunging, while others, including Kraken's Ink, Monad, and Berachain, have also lost traction.

Rising Crypto Prices May Benefit Robinhood's Business

Another catalyst for the HOOD stock price is the continued rise in Bitcoin and other cryptocurrencies. Bitcoin crossed the important resistance level of $80,000 on Monday, and other top cryptocurrencies such as Ethereum, XRP, and Solana have all bounced back in the past few days.

The performance of the crypto market matters because Robinhood, the retail trading platform, has become a major player in the industry. The platform allows users to trade cryptocurrencies, and because Robinhood earns transaction-based revenue from that activity, trading volumes feed directly into its results. The company spent $200 million to acquire BitStamp, a firm regulated in key markets including the US, the EU, and the UK.

A rebound in crypto prices would benefit Robinhood's business, which has counted crypto among its top laggards. The most recent results showed that notional crypto volumes — the total dollar value of assets traded, rather than Robinhood's own revenue — dropped to $40.4 billion from $82.4 billion in the fourth quarter of last year, making it one of the company's weakest businesses in recent quarters.

Yahoo Finance data shows that Robinhood is expected to post about $1.35 billion in revenue this quarter, a 5.7% increase from the same period last year. According to the report, a sustained crypto market rebound could push revenue higher than expected. These metrics likely explain why analysts remain optimistic about the company, with Bernstein carrying a price target of $160. The next quarterly report will be the first concrete checkpoint on whether the recovery in crypto trading activity is showing up in these figures.

Robinhood Stock Price Technical Analysis

The daily chart shows that HOOD stock has been in a strong upward trend over the past few months, forming a series of higher highs and higher lows. Along the way, the stock has formed a megaphone pattern — a formation in which price swings widen progressively — which the analysis identifies as a common bullish continuation sign.

The stock has also moved above the 200-day Exponential Moving Average (EMA), a widely followed long-term trend indicator that smooths price data; the analysis reads this as a signal that bulls remain in control. On this basis, the report characterizes the path of least resistance as higher, with the next key level to watch at $120. A move above that level, the analysis suggests, would point to further gains.