Robinhood Markets' (HOOD) blockchain-based transaction fees, known as chain revenue, are surging and are on track to surpass a $100 million annualized run rate, Deutsche Bank said Friday in a note.
Daily chain revenue remained below $200,000 through mid-August before rising to almost $500,000 on Aug. 29, about $1 million on Aug. 30, $1.92 million on Monday, $3.38 million on Tuesday and $4.01 million on Wednesday, Deutsche Bank said, citing data from DeFiLlama, an analytics platform.
The five-day total of $10.8 million translates to about $5.4 million of fee revenue for Robinhood, compared with Deutsche Bank's prior Q3 estimate of $4.6 million, the note said.
Recent momentum is tracking well ahead of prior forecasts, though visibility into how long the surge will last remains limited, the note said.
Deutsche Bank raised its price target on Robinhood stock to $135 from $115 and maintained its buy rating.
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