HOOD stock recently pulled back toward $117 after trading above $125, as investors assessed Robinhood’s expansion into blockchain infrastructure and prediction markets. Robinhood Chain’s decentralized finance assets have reached about $900 million, while prediction-market activity has expanded through Rothera, Kalshi, ForecastEX and OG.com.

These businesses represent additional potential revenue channels for Robinhood, although their rapid growth does not guarantee a rebound in the company’s stock. The reported figures measure activity across the network and prediction-market businesses; they do not by themselves show how much revenue Robinhood recognizes.

Robinhood Chain Metrics Continue to Expand

Robinhood Chain, a layer-2 network launched by Robinhood in July, is one of the company’s key blockchain initiatives. The network is built on Arbitrum’s stack and allows developers to create applications across areas including stablecoins, real-world assets (RWA) and decentralized finance.

Robinhood launched the product after adding tokenized stocks to its platform. Those tokenized stocks have enabled the company to offer the service in Europe and other countries.

Data compiled by DeFi Llama indicates that the total value locked (TVL) in Robinhood Chain’s decentralized finance ecosystem has risen to $900 million. Morpho Blue, Steakhouse Financial and Uniswap are among the network’s leading decentralized applications, or dApps.

The network has also accumulated substantial stablecoin assets. Its stablecoin market capitalization increased from zero in July to $1.02 billion. Based on that measure, Robinhood Chain has become one of the largest chains in the stablecoin industry and has overtaken Cardano, Near Protocol, Algorand and Berachain.

Decentralized exchange (DEX) protocols on Robinhood Chain have continued to process significant volumes this year. DEX volume over the past 30 days exceeded $28 billion, making the network the fourth-largest chain by that measure, behind Solana, Ethereum and BNB Chain. Robinhood Chain has surpassed Base, which recorded $25 billion during the same period.

The activity has also generated fees for the network. Robinhood Chain produced $27 million in fees this month, up from $6.5 million last month. Its cumulative fees have already exceeded $37 million. Under the reported arrangement, 10% of these fees normally goes to the Arbitrum Foundation. Continued fee generation and the handling of those fees are among the operating measures to watch as the network develops.

Robinhood Expands in Prediction Markets

Robinhood is also becoming a significant participant in prediction markets, which the article describes as one of the fastest-growing areas in finance. The company entered the sector through a partnership with Kalshi, whose valuation is nearing $40 billion.

More recently, Robinhood has focused primarily on Rothera, a platform it is developing with Susquehanna. The article says this approach would allow Robinhood to retain most of the profits rather than share them with Kalshi. Robinhood has begun routing some of its prediction data through Rothera.

Robinhood also entered into a major partnership with Crypto.com. Under the agreement, Robinhood will begin routing some event contracts through Crypto.com’s exchange and clearinghouse at the start of the Pro Football season. Robinhood took a stake in Crypto.com as part of the transaction, valuing the exchange at $20 billion. The company’s prediction-market activity has also involved ForecastEX and OG.com. The start of that routing arrangement, alongside the continued use of Rothera and the other platforms, provides a point at which the company’s expansion can be assessed through reported activity and fees.

HOOD Stock Technical Analysis

On the daily chart, HOOD stock has rebounded over the past several months, rising from a low of $63.50 in March to a high of $125 this week. The stock recently moved above the key resistance level of $111.9, which was its highest level in August, and has remained above its 50-day Exponential Moving Average (EMA).

The chart has also formed a megaphone, or broadening-wedge, pattern, which the article identifies as a common bullish continuation signal. The analysis indicates that the stock will likely retest support at $111.91 before potentially moving toward resistance at $130.

Equity and cryptocurrency markets remain volatile. This article is for informational purposes only and should not be considered financial or investment advice. Readers should conduct independent research before making investment decisions.

Source: The Market Periodical