Robinhood Crypto Revenue Dips Sharply From Decline in Trade Volume, Dogecoin Price Fall

Robinhood's share prices have dipped 8 percent since the announcement of its quarterly results.

By Shomik Sen Bhattacharjee | Updated: 28 October 2021 18:34 IST

Robinhood Crypto Revenue Dips Sharply From Decline in Trade Volume, Dogecoin Price Fall

Photo Credit: Unsplash/ Maxim Hopman

The slowdown came as Robinhood's customers traded less often than earlier earlier

Highlights

Robinhood posted a 35 percent revenue drop versus Q2 revenue figures
Robinhood's revenue fall is largely attributed to DOGE's value dip
Robinhood's shares dipped after the release of its Q3 results

Popular fee-less trading platform Robinhood saw a massive falloff in crypto revenue in the third quarter of 2021, marking a 78 percent decline over second-quarter numbers. Robinhood earned a revenue of $51 million (roughly Rs. 382 crores) in Q3, compared to the $233 million (roughly Rs. 1,745 crores) it raked in last quarter. The exchange attributed this massive dip to a decline in the price of Dogecoin, the meme-based cryptocurrency whose explosion in popularity earlier in the year helped shoot up customer sign-up numbers.

The price of Dogecoin had skyrocketed by 900 percent in less than a month in May 2021 to reach an all-time high of $0.7376 (roughly Rs. 55.33). In the months that followed, prices have receded drastically, hovering around the $0.20 (roughly Rs. 15) mark over the past few weeks. Dogecoin (DOGE) accounted for 62 percent of Robinhood's total digital asset trading revenue in the second quarter of the year so DOGE's popular dip certainly played a part in Robinhood's diminished third-quarter revenue.

Samsung Wins Patent for a Tri-Fold Smartphone With Specialised Barrier Layer for Improved Durability

Robinhood earned $365 million (roughly Rs. 2,738 crore) overall in the quarter, down from the $565 million (roughly Rs. 4,238 crore) it earned last quarter, but higher still than its Q3 earnings last year. On a year-to-year basis, total net revenues are up 35 percent in the third quarter, and crypto transaction revenues are up 860 percent compared with the same period in 2020. Adding to the positives, company spokespeople said that more than 1 million people had already joined the waitlist for the company's upcoming crypto wallet.

Robinhood May Add Crypto Wallet Soon, Asks Followers What They Want

According to Robinhood, its business has been impacted by factors including market volatility, retail trading behaviour, and unanticipated market events that may continue to be the case in the next quarter. Shares of Robinhood, which made its trading debut in July, fell about 8.4 percent to $36.25 (roughly Rs. 2,719) in after-hours trading, sliding below its initial public offering price of $38 (roughly Rs. 2,850) a share.

Interested in cryptocurrency? We discuss all things crypto with WazirX CEO Nischal Shetty and WeekendInvesting founder Alok Jain on Orbital, the Gadgets 360 podcast. Orbital is available on Apple Podcasts, Google Podcasts, Spotify, Amazon Music and wherever you get your podcasts.

Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risks. The information provided in the article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any sort offered or endorsed by NDTV. NDTV shall not be responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article.

Affiliate links may be automatically generated - see our ethics statement for details.

Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.