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A recent surge in trading volume on Robinhood Chain, an Arbitrum-based Ethereum layer-two network, appears to have come mostly from existing crypto traders rather than new user inflows, according to Lorenzo Valente, head of digital asset research at crypto investment firm ARK Invest.
Valente said he reviewed on-chain data and analyzed contract-level data directly, concluding that the vast majority of Robinhood Chain volume appears to have been driven by existing Degen traders, meaning crypto-native traders. Robinhood Wallet swap transactions are routed through 0x’s Settler contract, which Valente said is currently the only transaction type that can be clearly identified on-chain as Robinhood user activity. Even so, those transactions account for under 1% of total transactions, he said. Even under a generous assumption that some unidentified transactions also came from Robinhood users, the share would be only around 5%, according to Valente. The rest appears to reflect trading flows from existing traders using terminals such as GMGN, Axiom and OKX, with those traders behaving much as they do on other chains. In the end, Valente said, existing market veterans simply moved to a new chain rather than bringing in new users.