The meme-inspired cryptocurrency, Dogecoin (DOGE), has continued to take the top spot in crypto trading activities on Robinhood ever since it shot into the limelight earlier this year.
In its earnings report, the American financial services company pointed out significant increases in its crypto revenue in 2021 Q2 compared to last year’s second quarter. The firm said its digital asset-related figures rose from $5 million in Q2 2020 to about $233 million in Q2 2021.
DOGE Remains Robinhood’s Biggest Gem
Robinhood noted that cryptocurrencies accounted for more than half of its revenue in Q2 2021, with a whopping 62% coming from DOGE transactions.
Recall that earlier in July, the company stated in its IPO prospectus that the meme coin was responsible for about 34% of the crypto revenue in Q1 2021.
Now, the share for DOGE has nearly doubled in Q2, considering that the asset has continued to receive public attention following several endorsements from billionaires like Elon Musk and Mark Cuban in the past few months.
Growing Crypto Interest
About 52% of all transaction-based revenue on the platform came from crypto trades and over 60% of its net cumulative funded accounts traded virtual assets in the second quarter of 2021.
Robinhood noted that a substantial number of new users on its platform placed their first trades in crypto rather than equities, suggesting a growing interest in such assets over conventional financial instruments.
In a statement, Robinhood’s CEO and co-founder, Vlad Tenev, revealed that the company’s crypto products saw a significant level of interest from female investors in the second quarter.
“We’re encouraged by the number of people who are accessing the financial system for the first time through Robinhood… We’re happy to expand access through products like commission-free crypto trading, which saw strong growth this quarter among women investors in particular, and IPO Access, which gives customers an opportunity to invest in companies at their IPO price,” Tenev said.
Robinhood Warns on Q3 Trading, $HOOD Slumps 11%
The California-based financial services company has enjoyed an immense increase in its revenue, largely because of cryptocurrency trading, as indicated in its earnings report.
This growth has seen its user base surge significantly as more investors continue to troop into the digital asset space in search of alternative investment options.
After several delays in its initial public offering (IPO) filing, which had allegedly been due to intense scrutiny from financial regulators like the U.S. Securities and Exchange Commission (SEC) on its crypto services, the company finally went public on NASDAQ earlier this month.
However, it warned investors in the earnings report that it expects a less impressive Q3 revenue, considering that the trading boom is gradually simmering down.
“For the three months ended September 30, 2021, we expect seasonal headwinds and lower trading activity across the industry to result in lower revenues and considerably fewer new funded accounts than in the prior quarter,” the company said.
Following the warning, Robinhood shares $HOOD slumped by more than 11% in premarket trading.