Robinhood's New Blockchain Has Been a Smash Success. Here's Why That's Bearish for Ethereum.
The second-biggest cryptocurrency isn't gaining much for the load it's now helping to carry.
Overview
On July 1, Robinhood Markets (NASDAQ: HOOD) launched the Robinhood Chain, an Ethereum (CRYPTO: ETH) Layer-2 (L2) blockchain built on Arbitrum's (CRYPTO: ARB) technology. Nearly three weeks in, the chain already has $257.4 million in total value locked (TVL) -- a larger sum than many networks that have been operating for years -- and it also cleared $4.5 billion of decentralized exchange (DEX) trading volume in the seven-day period ending on July 20.
At the same time, Ethereum's price has been rising as a result of a narrative that more activity on Ethereum is good for the coin. In actuality, Robinhood's dynamic entry into the crypto space is bearish for the second-largest cryptocurrency. Here's why.
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Originally published at www.fool.com.