Robinhood Stock Climbs After Analyst Upgrades as New Layer‑2 Chain Shows Early Traction

Overview

• Robinhood shares rose more than 3% in premarket trading on Friday, July 10, after Morgan Stanley and Barclays raised their 12‑month price targets to $124 and $122 while keeping buy/overweight ratings.
• On July 1 Robinhood activated Robinhood Chain, a Layer‑2 built on Arbitrum that enables 24/7 tokenized stock trading across 120-plus countries and routes perpetual futures through a decentralized venue called Lighter.
• The new chain posted quick on‑chain metrics with roughly $100 million in total value locked and 24‑hour DEX volume that surpassed Hyperliquid within days of launch, and native tokens such as Cash Cat (CASHCAT) saw extreme short‑term price swings.
• The move positions Robinhood as a direct competitor to Solana for tokenized equities even though institutions are increasingly issuing assets on Solana, where on‑chain real‑world assets grew significantly since January 2026.
• Key tests ahead include audited Q2 results due July 29, whether deposits and trading volumes hold up, the company’s ability to convert on‑chain activity into revenue, and regulatory and execution risks tied to operating a proprietary chain.