According to the Bernstein Report, This Crypto Exchange Will Triple Its Trading Volume! What Does This Mean?

According to a new report published by Bernstein, it is expected that Robinhood's crypto revenue will rapidly increase and its trading volume will triple by 2026.

Bernstein said Robinhood's Crypto Trading Volume Will Triple by 2026 as Market Rally Continues

The upward forecast came after the company's strong earnings report, which led Bernstein analysts to nearly double their price targets for Robinhood shares to $105 per share last week.

Bernstein believes that the ongoing crypto bull market, supported by the rise of stablecoins and tokenized securities, will extend until 2026 and provide a significant tailwind for Robinhood's business.

Currently, cryptocurrency trading accounts for 40% of Robinhood's total transaction revenue, while non-crypto trading, including stocks, options, and other assets, accounts for the remaining 60%.

Bernstein predicts that this balance will change in the next two years and that crypto will become Robinhood's primary source of revenue.

Robinhood is steadily increasing its crypto-focused offerings aiming to be a significant entry point into the digital asset space for retail traders.

Johann Kerbrat, the general manager of Robinhood's crypto section, said in an interview last December, "We want to be a kind of ramp to the crypto world."

Bernstein's bullish outlook is consistent with Morgan Stanley's report released in January, which predicts that a more favorable U.S. regulatory environment will unlock even greater revenue potential by allowing Robinhood to "more aggressively enter the crypto sector."

Despite the firm's growing reliance on crypto, Bernstein analysts argue that Robinhood's diversified offerings will help mitigate the risk from crypto's notorious volatility.

The company positions itself to take advantage of long-term crypto adoption trends while weathering market fluctuations by expanding access to tokenized assets and stablecoins.