HOOD stock price analysis as key Robinhood Chain metrics surge

HOOD stock continued rising as several important catalysts, including the ongoing Robinhood Chain growth and analysts forecasts aligned. Robinhood jumped to $110 in extended hours, up by over 70% from its lowest level this year.

Robinhood Chain growth is accelerating

Third-party data shows that Robinhood Chain, which was launched in July, is firing on all cylinders, even as other layer-1 and layer-2 chains struggles.

According to DeFi Llama, the total value locked (TVL) in the chain, has jumped to a record high of $783 million. This is a big number that makes it the eleventh-biggest chain in the crypto industry.

Robinhood Chain has already passed many of the most popular chains in the industry like Cardano, Avalanche, Sui, Stellar, and Near Protocol.

The same is happening in other areas of the crypto industry. For example, DEX protocols in its platform have handled over $20.3 billion in transactions in the last 30 days. They had a volume of $1.55 billion in the last 24 hours, higher than the most popular chains in the industry likeEthereum, BNB Chain, and Base. 

Robinhood Chain also had a significant increase in stablecoin supply. It now has over $868 million in stablecoins, making it the 14th-biggest chain in this metric. It has already passed other popular chains like TON, Plasma, Optimism, and Sui.

These are important metrics as they show that its network is seeing strong growth and may ultimately surpass Coinbase’s Base. Eventually, Robinhood may decide to launch a HOOD token, which may attract a substantial valuation.

Robinhood is benefiting from diversification

Robinhood became popular for offering its commission-free trading services and for the gamification of trading. Today, the company has become a big name in several industries in the financial services sector. 

It expanded into the vibrant options trading industry, with the company executing millions of trades in a week. It also moved into the crypto industry, including by acquiring Bitstamp. 

Robinhood has also become a major player in the prediction markets, through a partnership with Kalshi. Most recently, however, the company has started to migrate to its platform, which it built in collaboration with Susquehanna. This business will likely be highly valuable over time.

The company is partnering with the US government on the Trump Accounts product and has started a wealth management service. As a result, the number of funded accounts has jumped to over 28.4 million, while the total platform assets jumped to over $369 billion. 

Analysts expect that Robinhood’s business will continue growing, with Yahoo Finance expecting that its annual revenue will jump to $5.19 billion, up by 16% YoY. It will then jump to $6.55 billion next year. 

Robinhood stock price technical analysis

HOOD stock chart | Source: TradingView

The daily chart shows that the HOOD stock price has been in an uptrend in the past few months. It has jumped from the year-to-date low of $63.50 to the current $106.9. 

The stock has remained above the ascending trendline that connects the lowest swings since April. Also, it has jumped above the 50-day and 100-day Exponential Moving Averages (EMA).

Therefore, these technicals suggest that the stock has more upside to go in the near term. If this happens, the next key target to watch will be at $120. This view will be confirmed if the stock moves above the key resistance at $110.