- Bernstein maintained an Outperform rating on Robinhood Markets with a $160 price target, citing expanding crypto infrastructure rather than trading alone.
- Analysts believe Robinhood Chain, tokenized stocks, Bitstamp, and Robinhood Earn will become the company’s next major growth engines.
- Despite weaker crypto trading volumes, Robinhood’s event contracts and blockchain products continue gaining momentum.
Bernstein has reaffirmed its bullish outlook on Robinhood Markets, arguing that the company’s cryptocurrency strategy is evolving well beyond trading into a broader blockchain and tokenization ecosystem.
The investment firm maintained its Outperform rating and $160 price target, implying significant upside from Robinhood’s recent share price. According to Bernstein, the company’s long-term opportunity increasingly lies in building digital asset infrastructure rather than relying solely on crypto trading revenue.
Analysts believe Robinhood’s expanding blockchain products position the company to benefit from the growing adoption of tokenized financial assets.
Robinhood Chain Continues Expanding
Bernstein highlighted several milestones achieved by Robinhood Chain since its launch.
According to the report, the blockchain has generated more than $12 billion in decentralized exchange volume while processing over 150 million transactions.
The firm’s Robinhood Earn product has also surpassed $200 million in deposits, while Stock Tokens are now available through Robinhood Wallet in more than 120 countries, expanding global access to tokenized equities.
Analysts believe these products demonstrate Robinhood’s strategy of building a broader on-chain financial ecosystem.
Prediction Markets Become a Major Business
Another key contributor has been Rothera, Robinhood’s event-contract exchange.
Since launching in June, the platform has processed more than 3.5 billion contracts, including 2.1 billion during the second quarter alone, generating approximately $17 million in revenue.
Bernstein said management expects an increasing share of prediction market trading to migrate onto Rothera over time while also exploring opportunities to offer the platform to other Futures Commission Merchants (FCMs) through a business-to-business model.
Event Contracts Overtake Crypto Trading
The report noted that Robinhood’s revenue mix continues shifting as crypto trading volumes moderate across the industry.
During the second quarter, event contracts generated $156 million in revenue, surpassing crypto trading revenue of $100 million.
As a result, Bernstein lowered its 2026 crypto trading revenue forecast by nearly 49%, reflecting expectations that overall cryptocurrency trading activity will remain softer than previously anticipated.
However, analysts believe newer blockchain services will more than offset that slowdown over the long term.
Regulatory Risks Still Remain
Despite its optimistic outlook, Bernstein acknowledged that Robinhood continues to face several regulatory risks.
Potential changes affecting the company’s payment-for-order-flow business model, evolving cryptocurrency regulations, and continued uncertainty surrounding whether certain digital assets qualify as securities could all impact future growth.
Even so, Bernstein believes Robinhood’s expanding tokenization strategy, blockchain infrastructure, and growing suite of digital financial products position the company for continued long-term growth as the financial industry increasingly moves on-chain.
