Robinhood Partners with Lighter to Transform Perpetual Futures Market
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Source: Fool
- Increased Market Competition: Robinhood's partnership with Lighter positions the latter as the third-largest decentralized perpetuals exchange, achieving $1.3 billion in 24-hour trading volume on July 7, indicating that Robinhood's support will significantly enhance Lighter's market standing.
- User Base Expansion: With nearly 28 million users, Robinhood now allows deposits of stablecoins into Lighter's smart contracts as collateral for trading, although the product is unavailable in the U.S. and other regions, it still provides Lighter with a new source of traffic.
- Tokenomics Optimization: Lighter has adjusted its tokenomics model, where trading fees will be used to repurchase and burn tokens, akin to stock buybacks, which will directly benefit holders by increasing the scarcity and value of its tokens.
- Hyperliquid's Market Advantage: Despite facing competition, Hyperliquid controls 61.5% of the decentralized perpetuals market, generating $202 million in trading fee revenue in Q2, showcasing its strong market position and potential for continued growth.
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Analyst Views on COIN
Wall Street analysts forecast COIN stock price to rise
25 Analyst Rating
17 Buy
7 Hold
1 Sell
Moderate Buy
Current: 168.870
Low
230.00
Averages
361.63
High
440.00
Current: 168.870
Low
230.00
Averages
361.63
High
440.00
About COIN
Coinbase Global, Inc. is a holding company of Coinbase, Inc. and other subsidiaries. The Company provides a platform that serves as a compliant on-ramp to the onchain economy and enables users to engage in a variety of activities with their crypto assets in both proprietary and third-party product experiences enabled by access to decentralized applications. It offers consumers their primary financial account for the onchain economy; institutions a full-service prime brokerage platform with access to deep pools of liquidity across the crypto marketplace, and developers a suite of products granting access to build onchain. The Company offers products and services to various customer groups: consumers, businesses, institutions, and developers. Its transaction products consist of consumer trading, prime trading, markets, base protocol and Coinbase wallet. The Company also provides market infrastructure in the form of exchanges for customers to trade spots and derivatives.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Earnings Expectations: The company is expected to report an EPS of $0.31, representing a substantial year-over-year increase of 158.33%, although the revenue forecast of $1.36 billion shows a 9.27% decline compared to the prior year, highlighting market concerns about its profitability.
- Annual Outlook: The Zacks Consensus Estimates predict earnings of $1.74 per share and revenue of $5.95 billion for the fiscal year, indicating declines of 56.82% and 17.13% respectively from the previous year, which may affect investor confidence.
- Valuation Metrics: Coinbase's forward P/E ratio stands at 95.18, significantly higher than the industry average of 11.13, suggesting its stock is trading at a premium, while a PEG ratio of 5.84 indicates insufficient expected earnings growth potential, which could impact future investment decisions.
See More
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- Market Expansion: Coinbase announced it has secured UK investment services authorization, allowing UK users to trade derivatives and equities on a single platform for the first time, enhancing user convenience and the platform's competitive edge.
- Product Diversification: The new authorization will enable institutional and advanced traders to access a variety of derivatives, including crypto, equities, and commodity perpetual futures, further enriching Coinbase's product offerings to meet diverse user needs.
- New Opportunities for Retail Users: Retail users will be able to trade equities on Coinbase for the first time, a move that not only broadens their investment options but also has the potential to attract more users, thereby increasing the platform's market share.
- Enhanced Compliance: This authorization, combined with Coinbase's e-money license and crypto registration in the UK, demonstrates the company's ongoing commitment to compliance, laying a solid foundation for future business expansion.
See More
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- Legislative Concerns: U.S. lawmakers are considering measures to curb the adoption of Chinese AI models by domestic companies, as these models close the performance gap with American rivals while being cheaper, potentially impacting national security and technological leadership.
- Investigation Launched: The House Committee on Homeland Security and the House Select Committee on China have initiated a joint investigation, sending letters to Cursor and Airbnb regarding their use of Chinese AI models, highlighting serious national security concerns.
- Market Competition: Some U.S. tech firms, including Coinbase and Lindy, publicly advocate for using Chinese AI models to reduce costs, reflecting economic pressures that may lead to a decline in market share for American models.
- Policy Challenges: Despite concerns from the Trump administration about the use of Chinese AI models, restricting their adoption faces legal and market challenges, particularly due to the widespread availability of open-source models that could raise First Amendment issues.
See More
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- Legislative Investigation: Two major U.S. House Committees are jointly investigating the rising adoption of Chinese AI models by American companies, particularly as these models close the performance gap with U.S. rivals while being cheaper, posing potential national security threats.
- Security Concerns: Andrew Garbarino, chairman of the House Committee on Homeland Security, highlighted alarming reports that certain Chinese open-weight models can match leading U.S. models in vulnerability discovery and cybersecurity tasks, raising serious concerns amid escalating U.S.-China tech rivalry.
- Government Response Strategy: While some government departments have banned the use of Chinese AI models, U.S. companies are still free to choose them, and the House Committees are examining whether the U.S. has a sufficient open-weight AI strategy to ensure domestic models can compete with cheaper, capable Chinese alternatives.
- Potential Restriction Measures: Experts suggest that the government may consider federal procurement bans to restrict the use of Chinese AI models, although the difficulty of a complete ban is compounded by the availability of these models' open-source code online, which could raise First Amendment issues.
See More
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- Revenue Growth: Although Robinhood reported only 15% year-over-year revenue growth in the first quarter, which disappointed some investors, this is still impressive given the 50% and 40% growth in 2024 and 2025 respectively, showcasing a reduced reliance on cryptocurrency.
- Diversified Revenue Streams: The company's 'other transaction revenue' has quadrupled year-over-year, now accounting for over 10% of total sales, highlighting strong performance in emerging areas like prediction markets, while options revenue also increased by 8%, reinforcing its market position.
- Future Outlook: With the diminishing impact of cryptocurrency on Robinhood's finances, the company is expected to deliver significantly higher year-over-year growth rates by 2027, and the optimistic sentiment among investors is driving the stock's rise, reflecting confidence in its long-term growth potential.
See More
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- Revenue Growth Analysis: Robinhood reported a 15% year-over-year revenue growth in Q1, which, while disappointing compared to 50% in 2025 and tripling in 2024, indicates a gradual reduction in reliance on crypto, suggesting potential for higher future growth.
- Diminishing Crypto Impact: With crypto transaction revenue down 47% year-over-year, Robinhood has successfully mitigated this negative impact through diversification and growth in other revenue streams, positioning itself for improved overall performance in the future.
- Strong Alternative Revenue Sources: Other transaction revenues, driven by prediction markets and options trading, saw increases of over fourfold and 8% respectively, contributing to more than 10% of total sales, highlighting the company's robust performance outside of crypto.
- Optimistic Market Outlook: Despite volatility in the crypto market, Robinhood's overall business continues to grow, with expectations for higher year-over-year growth rates by 2027, bolstering investor confidence in its future performance.
See More
