Widespread inventory trading app Robinhood sees crypto buying and selling on its platform reach report levels within the second quarter, with crypto accounting for greater than half of all transaction-based revenues. Furthermore, the meme cryptocurrency dogecoin made up 62% of the crypto trading quantity in Q2.
Dogecoin’s Popularity Soars on Robinhood, Crypto More Popular Than Equities
Robinhood Markets Inc. (Nasdaq: HOOD) announced Wednesday the financial results for the second quarter ended June 30.
Robinhood mentioned that in Q2 crypto accounted for greater than half of all transaction-based revenues, which increased 141% to $451 million during the time interval, in contrast with $187 million in the same interval last year.
Revenues from cryptocurrencies elevated to $233 million in Q2 this year in comparison with $5 million in the identical quarter final yr.
“Robinhood’s clients demonstrated important curiosity in cryptocurrencies, with over 60% of our internet cumulative funded accounts buying and selling in crypto through the second quarter,” the announcement particulars, including:
The three months ended June 30, 2021 is the first quarter where a bigger share of new clients placed their first commerce in crypto rather than equities.
Vlad Tenev, CEO and co-founder of Robinhood, commented: “We’re inspired by the variety of people who find themselves accessing the financial system for the first time through Robinhood. We’re completely happy to increase access by means of merchandise like commission-free crypto trading, which noticed sturdy progress this quarter amongst women buyers particularly, and IPO Access, which supplies clients a possibility to put money into corporations at their IPO price.”
Robinhood launched its IPO Access product on May 20. It gives clients “access to shares of sure preliminary public choices on the similar value as institutional and high net worth investors,” the corporate mentioned.
Jason Warnick, Robinhood’s chief financial officer, mentioned during the company’s earnings call:
Notably, 62% of crypto trading quantity was in dogecoin in Q2, which compares to 34% in Q1.
In its IPO prospectus, Robinhood mentioned dogecoin accounted for 34% of its cryptocurrency transaction-based revenue in the first quarter, up from 4% in the fourth quarter.