Robinhood's second-quarter earnings show crypto has become the driving force of growth in the investment app's revenue.
Between Q2 2020 and Q2 2021, transaction-based revenues from cryptocurrency trading increased by a jaw-dropping 4,282%.
Total transaction-based revenue was $451 million, forming the bulk of the firm's $565 million revenue in Q2. Crypto transaction fees were, consequently, responsible for the lion's share of growth between 2020 and 2021. Robinhood's filing also notes that 62% of its cryptocurrency transaction-based revenue was attributable to Dogecoin trades.
That change has happened alongside a rise in user interest in crypto. "Robinhood’s customers demonstrated significant interest in cryptocurrencies, with over 60% of our net cumulative funded accounts trading in crypto during the second quarter," the firm said.
As The Block previously noted, the firm has grown more reliant on crypto while revenues from payment for order flow for stock trades have declined during the second quarter.