The Robinhood Chain project has shed new light on the Ethereum revenue generated by Layer 2 blockchains. The latest statistics revealed a significant gap between user fees and Ethereum’s revenues.
User fees exceeded $800,000, whereas Ethereum only got a small amount for settlement and data availability.
According to Ethereum Daily, the user fee amounted to $843,000, whereas the network remitted almost $1,600 to Ethereum. Those amounts accounted for data availability and settlement costs.
Crypto analyst Lorenzo Valente shared an earlier data snapshot. The revenue was approximately $816,000, and costs relating to Ethereum amounted to $1,538. Those amounts were slightly different because they were recorded at different times.
Valente stated that Robinhood was earning 89% of the revenue. According to him, Arbitrum was getting 10%. Ethereum had only 0.15% of this activity.
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How Robinhood Chain Fuels L2 Debate
The figures pushed Robinhood Chain further into the wider Layer 2 discussion. Increased transaction volume may lead to an increased need for ETH as gas, collateral, and settlement. But Layer 2 chains can still retain most of the fees that users pay.
The chain is built using the Arbitrum technology. Transactions from the chain are relayed to the Ethereum blockchain for finalization. The structure allocates 10% of the protocol revenue to the Arbitrum ecosystem.
Of these, 8% go to the DAO treasury. The 2% goes towards developer funding. This demonstrates how Robinhood Chain is contributing to Arbitrum revenue generation with minimal fee payments to Ethereum.
According to Ethereum Daily, such an assessment of fee capture did not give a full view. The network could have onboarded stock token holders to its ecosystem. Robinhood introduced Stock Tokens through Robinhood Wallet in over 120 countries.
Eligible users can trade those assets all day round. They can also make use of decentralized applications, including lending pools and collateral markets.
Why Lubin Supports Low Ethereum Fees
Joe Lubin supported low fees on Ethereum. He said that the fees of Ethereum Layer 1 should stay low in order to foster growth. According to him, more firms would use mainnet, Layer 2 networks, and private chains.
Lubin’s arguments focus on the wider ETH demand rather than settlement revenues. More networks can use ETH for gas, collateral, and staking. Mainnet operations can also decrease ETH supply through burns.
Robinhood introduced the public mainnet of Robinhood Chain on July 1. It is an Ethereum Layer 2 network created using Arbitrum for real assets, trading, and decentralized finance. It is powered by Uniswap, Chainlink, Morpho, and other service providers.
What Robinhood Chain Liquidity Means for ETH Demand
As reported earlier, the network hit $70 million in bridged Ether and $100 million in total value locked. Uniswap’s daily volume was around $500 million. The initial liquidity is provided through transactions, lending products, and an incentive-based strategy.
The discussion now highlights the difference between fee revenue and wider usage of the network. Ethereum gains very little in user fees compared to Robinhood and Arbitrum.
Its long-term success will hinge upon whether these new users generate a reliable demand for ETH through transactions, settlement, and collateral markets.
Also Read: Bitmine Adds 27,801 ETH as Robinhood Chain Tops $1B Volume
