Popular stock trading app Robinhood sees crypto trading on its platform reach record levels in the second quarter, with crypto accounting for more than half of all transaction-based revenues. Moreover, the meme cryptocurrency dogecoin made up 62% of the crypto trading volume 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 said that in Q2 crypto accounted for more than half of all transaction-based revenues, which increased 141% to $451 million during the time period, compared with $187 million in the same period last year.
Revenues from cryptocurrencies increased to $233 million in Q2 this year compared to $5 million in the same quarter last year.
“Robinhood’s customers demonstrated significant interest in cryptocurrencies, with over 60% of our net cumulative funded accounts trading in crypto during the second quarter,” the announcement details, adding:
The three months ended June 30, 2021 is the first quarter where a larger share of new customers placed their first trade in crypto rather than equities.
Vlad Tenev, CEO and co-founder of Robinhood, commented: “We’re encouraged by the number of people who are accessing the financial system for the first time through Robinhood. We’re happy to expand access through products like commission-free crypto trading, which saw strong growth this quarter among women investors in particular, and IPO Access, which gives customers an opportunity to invest in companies at their IPO price.”
Robinhood launched its IPO Access product on May 20. It provides customers “access to shares of certain initial public offerings at the same price as institutional and high net worth investors,” the company said.
Jason Warnick, Robinhood’s chief financial officer, said during the company’s earnings call:
Notably, 62% of crypto trading volume was in dogecoin in Q2, which compares to 34% in Q1.
In its IPO prospectus, Robinhood said dogecoin accounted for 34% of its cryptocurrency transaction-based revenue in the first quarter, up from 4% in the fourth quarter.
What do you think about the popularity of dogecoin on Robinhood? Let us know in the comments section below.