Popular fee-free trading platform Robinhood saw a huge drop in crypto revenue in the third quarter of 2021, a 78 percent drop in the second quarter numbers. Robinhood posted revenue of $51 million (approximately Rs 382 crore) in the third quarter, compared to $233 million (approximately Rs 1,745 crore) in the previous quarter. The exchange attributed this steep drop to a drop in the price of Dogecoin, the meme-based cryptocurrency whose explosion in popularity helped customer sign-up numbers shoot up at the start of the year.
Dogecoin price surged 900 percent to an all-time high of $0.7376 (approximately Rs 55.33) in May 2021 in less than a month. In the months that followed, there has been a steep decline in the price, hovering around $0.20 (approximately Rs.15) over the past few weeks. dogecoin 62 percent of (DOGE) Robinhood’s Total digital asset trading revenue in the second quarter of the year so DOGE’s popular decline certainly played a role in Robinhood’s decline in third quarter revenue.
Robinhood earned $365 million (approximately Rs 2,738 crore) in the quarter overall, down from $565 million (approximately Rs 4,238 crore) in the previous quarter, but still higher than last year’s third quarter earnings. On a year-over-year basis, total net revenue grew 35 percent in the third quarter, and crypto Transaction revenue is up 860 percent compared to the same period in 2020. Adding to the positives, a company spokesperson said that over 1 million people had already joined the company’s waiting list. Upcoming Crypto Wallet.
According to Robinhood, its business has been affected by factors including market volatility, retail trading behavior and unforeseen market events that may continue into the next quarter. Shares of Robinhood, which made its trading debut in July, fell nearly 8.4 per cent to $36.25 (about Rs 2,719) in after-hours trading, well below its initial public offering price of $38 (about Rs 2,850) per share. .
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