Robinhood CEO Vlad Tenev sparked mixed reactions from the community after touting the newly launched Ethereum L2 Robinhood Chain as a great option for the memecoin event. Initially positioned as focused on the tokenization of real-world assets (RWA), its openness to experimenting with memecoins was met with strong criticism and little support.
While Robinhood has built Chain to be the best chain for RWA, it also works great for memes.
Some venture capitalists in the industry criticized the move, questioning the viability of another Ethereum L2. Moonrock Capital’s Simon Dedic responded:
Another L2 that offered no real value over the existing ones was exactly what we were missing. But hey, you can swap memes too. Someone tell Vlad that 2024 isn’t coming anymore.
Some have even drawn comparisons to Coinbase CEO Brian Armstrong, whose centralized platform has been slow to list memecoins. However, for Base, L2 incorporates some memecoins.
For perspective, Solana gained significant attention in the early stage of the current market cycle due to the memecoin craze driven by PumpFun.
Unfortunately, retail investors suffered heavy losses and some became victims of fraud. Memecoin issuers like Trump-affiliated World Liberty Financial in pocket most of the gains. So it’s understandable why some hate memecoins.
Could Robinhood L2 dominate memecoin activity?
Still, memecoins are driving blockchain activity. It’s also the best way to gain market share, especially for a new chain like Robinhood Chain.
For perspective, memecoin activity accounts for 40% to 50% of the total trading volume on Solana and BNB Chain. Besides Ethereum, Solana and BNB Chain are some of the best chains in terms of total value locked (TVL).
In fact, Base ranks fourth in terms of memecoin dominance with less than 2% market share.
In other words, Tenev may be investing in memecoins to catch up with its competitors and may even be acquiring new ones. DEX platforms. Surprisingly, the hype seems to be paying off, at least after her post went viral.
For example – Cash Cat (CASHCAT) and 4663, two memecoins on the Robinhoood Chain, have exploded by 1100% and 800% in the last 24 hours as investors try to bridge to L2.
Amid the FOMO, L2 saw its TVL increase 10x from $10 million to $105 million in less than a week. Similarly, DEX volumes increased from $10 million to $52 million, underlining the increased traction.
It remains to be seen whether the traction will be sustainable and help rival Base and other high-end chains.
Final Summary
- Robinhood CEO wants new L2 to dominate RWA and memecoins
- Memecoin craze sparks interest on Robinhood Chain, increasing activity 10x
