Popular no-fee trading platform Robinhood saw a massive drop in crypto revenue in the third quarter of 2021, a 78 percent drop from the second quarter’s numbers. Robinhood had third-quarter sales of $ 51 million (approximately rupees 382 billion) compared to $ 233 million (approximately rupees 1,745 billion) last quarter. The exchange attributed this massive drop to a drop in the price of Dogecoin, the meme-based cryptocurrency whose popularity helped drive customer signups soaring earlier this year.
The price of Dogecoin had skyrocketed 900 percent in less than a month in May 2021, hitting an all-time high of $ 0.7376 (about 55.33 rupees). In the months that followed, prices dropped dramatically, hovering around the $ 0.20 mark (around 15 rupees) in 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.
Robinhood made a total of $ 365 million (about Rs 2,738 billion) for the quarter, up from the $ 565 million (about Rs 4,238 billion) it made last quarter, but still higher than earnings in the third quarter of last Year. On an annualized basis, total net revenue increased 35 percent in the third quarter and revenue from crypto transactions increased 860 percent compared to the same period in 2020. In addition to the positive results, company spokesmen came that more than 1 million people were already on the waiting list for set the company’s upcoming crypto wallet.
According to Robinhood, the business has been impacted by factors such as market volatility, retail behavior and unexpected market events, which could also be the case for the next quarter. Robinhood’s shares, which made their trading debut in July, fell about 8.4 percent in after-hours trading to $ 36.25 (about Rs 2,719), down below their $ 38 (about Rs 2,850) per share price .
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