Popular retail trading app, Robinhood, has revealed crypto trading surged in popularity on the platform and now represents 41% of its revenue.
According to its second-quarter financial results published Aug. 18, the firm generated $233 million from crypto trading services for the quarter, up from $5 million for the entirety of 2020. More than 60% of funded Robinhood accounts traded digital assets during Q2 2021.
With early 2021 witnessing the speculative dog-token trading frenzy, a whopping 62% of Robinhood’s crypto revenue was derived from Dogecoin trades.
The earnings report is the first released by Robinhood since it became a public company. Vlad Teev, co-founder and CEO of Robinhood, stated:
“We’re encouraged by the number of people who are accessing the financial system for the first time through Robinhood.”
Revenue tagged $565 million for the quarter overall, a 131% increase compared to Q2 2020’s $244 million. Monthly active users more than doubled year-over-year (YoY) from 10.2 million to 21.3 million, while funded accounts increased by 130% over the same period.
The value of assets custodied by Robinhood also tripled YoY to tag $102 billion.
Despite the surging crypto revenue, Robinhood reported an overall loss of $464 million for Q2. However, the losses are attributed to accounting adjustments pertaining to the fluctuating warrants and notes held by the company.