Robinhood (NASDAQ:HOOD) stock has been in a strong bull run recently, moving from the year-to-date low of $64 to $112. This rally continued this week as the stock formed a golden cross pattern amid the ongoing success of Robinhood Chain, its layer-2 network.
HOOD Stock Jumps as Robinhood Chain Gains Momentum
Robinhood Chain, the layer-2 network that the company launched ten days ago, is gaining momentum and beating some of the most popular players in the crypto industry like Cardano (CRYPTO: ADA) and Hedera (CRYPTO: HBAR).
Data compiled by DeFi Llama shows that the amount of stablecoin tokens in the network has jumped to $300 million, a sign that investors are interacting with it. Cardano and Hedera, which have been in the industry for years, have less than $100 million in combined stablecoins.
More data shows that Robinhood Chain’s total value locked (TVL) has gone parabolic, reaching $122 million. Most of this growth has been driven by Morpho Blue, a top lending protocol, and Uniswap.
Meanwhile, the volume of decentralized exchange (DEX) volume in the network has continued rising, reaching $2 billion this week. This is a big increase from last week’s $29 million. All these metrics pushed the total chain fees to over $107,000 this week.
These numbers are strong considering that the crypto winter is not yet over, with Bitcoin (CRYPTO: BTC) and top altcoins like Ethereum (CRYPTO: ETH) and Ripple (CRYPTO: XRP) being in a bear market.
Robinhood aims for its chain will be a popular platform for developers building applications in the financial services and other industries. It also aims to use the chain to distribute its real-world assets like stocks and exchange-traded funds (ETFs).
Robinhood Chain is replicating the success that Coinbase (NASDAQ:COIN) has achieved with Base, which has become one of the most popular layer-2 networks in the crypto industry.
However, it is worth noting that early success does not always equite to long-term success. Historically, some chains like Uniswap’s UniChain, Berachain, and Kraken’s Ink have started well only for their activity to fade.
These developments are happening as Robinhood’s business is doing well, with its transaction volume continuing the uptrend. Benzinga data shows that analysts expect its upcoming earnings to show that its revenue jumped to $1.21 billion in the last quarter.
Robinhood Has Formed a Golden Cross Pattern
HOOD stock chart | Source: TradingView
Technicals suggest that HOOD stock may have more gains to go as it has formed the first golden cross pattern since 2023. A golden cross happens when the 50-day moving average crosses the 200-day moving average. In most cases, this pattern normally leads to more gains.
These gains will be confirmed if the stock jumps above the key resistance level of $119.20, its highest point this month. If this happens, the next target to watch will be $154, its all-time high.
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