Robinhood said that in their second quarter, crypto accounted for more than half of all transaction-based sales, with Dogecoin accounting for 62% of their crypto revenue.
Robinhood reported $233 million in income from crypto transactions in its first earnings report since its IPO last month, up from $5 million the year before.
52% of crypto accounted for transaction-based revenue, which raised from 17% in the 1st quarter and 4% in the 4th quarter of the previous year.
According to the firm, during the quarter, more than 60% of all net-funded accounts traded cryptocurrency.
Robinhood rose to prominence
While Robinhood rose to prominence by offering free stock trading to a new generation of investors, it has also gained the benefits of the cryptocurrency market boom. Using the app, investors may purchase and trade bitcoin, bitcoin cash, Dogecoin, Ethereum, and Litecoin, among other digital currencies.
The 2nd quarter was unusually feeble for cryptocurrencies. After a massive gain in 2020, the price of bitcoin plummeted by more than 40%, however it has subsequently recovered much of that value. In the meantime, Ethereum increased by around 18%, and the value of Dogecoin also increased exponentially.
Dogecoin accounted for 34% of Robinhood’s cryptocurrency transaction-based revenue in the 1st quarter, increased from 4% in the 4th quarter, according to the company’s IPO prospectus. A flood of tweets about Dogecoin from Tesla CEO Elon Musk was mainly responsible for that increase. As Dogecoin’s value continued to rise, that number soared substantially higher in the most recent period.
In its prospectus and quarterly report, Robinhood even highlighted a risk related to Dogecoin, stating that its business might be harmed if the markets for Dogecoin weakens or if the price of Dogecoin falls.
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Robinhood generates wealth in cryptocurrency by directing orders to market makers with viable pricing and collecting a small percentage of order value. Its crypto assets nearly multiplied to $22.7 billion in the 2nd quarter, up from $11.6 billion a quarter earlier and $3.5 billion by the end of 2020.