Robinhood recently announced the results for its second quarter this year and the overall numbers were quite strong and in line with market expectations but what was surprising was the fact that a major part of the revenue was driven by crypto trading and not stocks.
The total revenue surged to $565 million of which $233 million was through crypto-related revenues. To give a bit of context, This is a rise from $5 million in revenues that were generated during the same time last year and this just goes to show the massive interest in trading of cryptos among the retail traders as they seem to love the volatility that it brings in to the trading providing a lot of trading opportunities for all. The company also said that over 60% of all the crypto trading was related to Dogecoin which is up from 34% in the first quarter of this year.
This shows the continued interest of the crypto traders in the trading of Dogecoin, helped in no mean measure by the tweets and subtle marketing from Elon Musk. Now with the recent announcement of the relaunch of the Dogecoin Foundation, with Vitalik Buterin and the Head of Musk’s Family Office on board, it can only push the interest in Dogecoin even further in the coming months. The company also said that over 60% of the funded accounts traded crypto which is up from 11% last year and this is further proof that crypto trading is here to stay.
There has also been an increasing demand for a crypto wallet from the users of Robinhood to make deposits and withdrawals easier in the long run and the company would likely be working on this aspect in the next quarter. The company has also said that it expects to face some trading headwinds in the next quarter which could hit its revenue. But again, with crypto trading dominating the company landscape for now, and the crypto prices expected to continue their upward journey in the next half of the year as well, we can expect that the company would generate a lot of crypto trading-related revenue which should keep it in good stead and this could also lead to the company focussing its efforts on adding more features and upgrades for the crypto trading community in the future.