Robinhood Chain’s on-chain transaction volume and user count have continued to decline after an early drop driven by meme coins

PANews July 29 news: According to The Block, less than a month after the Robinhood Chain mainnet went live, its TVL reached about $325 million, with no downtime of any kind during the period. Despite ongoing TVL growth over the past month, all throughput metrics peaked in the second week after launch and then began to decline. Last week, the chain’s DEX average daily trading volume was about $553 million, down 27% month-over-month; average daily active accounts were about 275k, down 7% month-over-month.

On-chain capital turnover dropped sharply from 9.25x in the second week of July to 1.68x last Friday, indicating that the rate of capital inflows has far outpaced trading activity. In the near term, deposits are driven more by yield rather than by trading, which is likely due to the roughly 7% annualized yield on USDG provided by Robinhood Earn. The trading volume per active account also fell from a peak of about $2,800 two weeks ago to about $2,000 last week. Previously, Robinhood CEO Vlad Tenev said the chain is “also very suitable for Meme coins,” sparking a brief Meme-coin rush such as CASHCAT, but the prices of related tokens have continued to decline since then. Robinhood will release its Q2 earnings report on Wednesday.