Robinhood chain has seen its total value locked (TVL) increase daily to about $325 million in less than a month since its mainnet started operating.
According to a recent report by The Block, Robinhood chain's TVL has continued to rise, but trading volume indicators appear to be falling after peaking in the second week of chain operations. Decentralised exchange (DEX) trading volume last week averaged $553 million a day, down 27 percent from the previous week. The number of active accounts also fell 7 percent from the prior week to an average of about 275,000 a day.
Chain turnover, calculated by dividing DEX trading volume by TVL, fell to 1.68 times last Friday from 9.25 times in the second week of July. That means funds are flowing in faster than they are being traded, showing that recent deposits are concentrating on yield rather than trading purposes, The Block reported.
This appears to be due to the impact of a Robinhood Earn product that offers an annual interest rate in the 7 percent range on USDG. Trading volume per active account also fell to $2,000 last week from about $2,800 about two weeks earlier.
Chi-gyu Hwang
delight@d-today.co.kr