Watch Out, Solana and Ethereum. Robinhood’s Blockchain Is Eating Your Lunch.

Robinhood Markets‘ (NASDAQ: HOOD) two-month-old blockchain that runs on technology licensed from Arbitrum (CRYPTO: ARB) is now out-earning every other network in crypto on a daily basis. Arbitrum’s coin jumped by 30% on Sept. 1 as the market realized that it captures a slice of the fees flowing toward Robinhood Chain. Then, on Sept. 2, Robinhood’s users paid $3.7 million in fees, whereas Solana (CRYPTO: SOL) only brought in $899,773 in the same period, and Ethereum (CRYPTO: ETH) only $314,988.

What’s more, Robinhood is successfully competing in the exact segments that both of those networks are relying on for growth. It’s eating their lunch, and it’s just getting started — so what’s the best move for investors to profit from the market’s new entrant and its powerful debut?

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The new chain is just another crypto casino (for now)

Robinhood marketed its new network as a trading infrastructure for tokenized stocks, which is crypto that represents ownership of shares.

But its vast user base had other plans about how to engage with the new platform. In short, customers seem to want to use the chain as yet another place to gamble or speculate on extremely risky and worthless meme coins.

For example, Pons, Robinhood Chain’s largest meme coin launchpad application, lets anyone mint and trade a new meme coin in seconds; comparable projects have long existed on Solana and Ethereum. It collected more than $4.5 million in fees on Sept. 2 alone, per data from DefiLlama.

In other words, a project dedicated to helping people gamble on new coin launches brought in more revenue for itself than its network did in the same period. That suggests a high degree of concentration of Robinhood Chain’s economic value into an ultimately frivolous corner of the crypto world. During the 30 days ended Sept. 2, though, Solana still collected $22.3 million in chain fees against Robinhood Chain’s $10.3 million, and $331.58 million across all its applications.

The trouble with having a successful on-chain casino is that money that flows in for gambling tends to flow out just as fast. And that’s especially true when market conditions worsen; unlike projects or businesses performing more useful economic activities, meme coin launchpads tend to see their revenue dry up when their chain’s native token is struggling, compounding the problem.

Source: finance.yahoo.com