Robinhood, a popular stock trading app, has seen crypto trading increase to record levels in its second quarter. Crypto accounts for more than half of the transaction-based revenue. The meme cryptocurrency dogecoin accounted for 62% of crypto trading volume in Q2.
Dogecoin’s Popularity Rises on Robinhood, Crypto More Popular than Equities
The financial results for the second quarter ended June 30, 2018 were released by Robinhood Markets Inc. (Nasdaq: HOOD) on Wednesday.
Crypto accounted for more than half of Robinhood’s transaction-based revenue in Q2, which jumped by 141 percent to $451 million from $187 million in the previous quarter.
Cryptocurrency revenue climbed to $233 million in the second quarter, up from $5 million the previous year.
According to the statement, “more than 60% of our net cumulatively funded accounts traded in crypto during quarter two,” indicating that “Robinhood’s clients exhibited substantial interest in cryptocurrencies.”
“The three months ended June 30, 2021 were the first quarter in which a higher percentage of new clients traded crypto than stocks.
“We are pleased by the number of individuals joining the financial system for the first time through Robinhood,” said Vlad Tenev, CEO and co-founder of Robinhood. We’re excited about expanding access to products like commission-free cryptocurrency trading, which has seen a lot of interest from female investors, and IPO Access, which lets clients participate at the initial public offering price.
On May 20, Robinhood’s IPO Access service became live. Customers can buy shares in some initial public offerings at the same price as institutional or high-net-worth investors, according to the firm.
Jason Warnick, Robinhood’s chief financial officer, remarked on the company’s earnings call:
“Notably, Dogecoin accounted for 62 percent of crypto trade volume in Q2, compared to 34 percent in Q1.
In its IPO prospectus, Robinhood said that dogecoin accounted for 34% of its cryptocurrency transaction-based income. This is an increase from the fourth quarter’s 4%.
What do you think of the popularity of Robin Hood’s Dogecoin? Comment below to let us know your thoughts.