Analyst Devin Ryan from Citizens has increased the price target for Robinhood Markets (HOOD) from $155 to $165. This adjustment follows the early performance of the company's Ethereum Layer 2 network, Robinhood Chain, which launched on July 1, 2026.
Projections indicate that the chain could generate approximately $365 million in net revenue by 2027, averaging $1 million per day. By early September 2026, the network reached over $400 million in total value locked, with an annualized decentralized exchange volume of $200 billion.
The network utilizes Arbitrum technology, which currently collects 10% of net sequencer revenue. This fee is divided between the Arbitrum DAO treasury and the Developer Guild. The revenue projection assumes Robinhood will reach an 85% revenue-sharing threshold with the Arbitrum stack.
Growth has been driven by memecoins and decentralized exchange activity, with daily fees occasionally exceeding $4 million. Future revenue expansion is expected through prediction markets and perpetual futures, alongside the core strategy of tokenizing real-world assets for 24/7 trading.
