The American financial services company – Robinhood – announced that its cryptocurrency trading revenue for the fourth quarter of 2021 was $48 million. By comparison, this volume was $51 million in Q3.
Disappointing Crypto Revenue for Robinhood in Q4
2021 has been a highly successful year for Robinhood as the company enjoyed significant financial profits during the pandemic. However, in terms of digital asset trading revenue, it started slowing down its run.
According to recently reported results, crypto revenue was $48 million in the fourth quarter of 2021, down 6% from the prior quarter. The company also missed Wall Street’s $55 million expectation. Following the decline, shares of Robinhood fell around 10%.
Nonetheless, cryptocurrency trading revenue in Q4, 2021 was 304% more than the fourth quarter in 2020 ($12 million), the company reminded. At the same time, digital assets accumulated profits of $419 million for the whole of last year, while in 2020, this number was a mere $27 million.
Cryptocurrency services provided by Robinhood have exploded in popularity throughout 2021. Currently, users of the platform can purchase many assets such as Bitcoin (BTC), Ethereum (ETH), Dogecoin (DOGE) and many others.
Several months ago, the organization’s CEO – Vlad Tenev – revealed that his company is looking to offer more crypto options to its clients, including a digital wallet:
“We did a lot of work behind the scenes to provide our crypto customers with the features they were asking for. We know you want wallets.
In January this year, Robinhood introduced that product. The company’s CPO – Aparna Chennapragada – noted that many customers are enthusiastic about delving into the new wallet as the waiting list had reached two million users.
Previous quarters
Robinhood’s cryptocurrency revenue flourished primarily in the second quarter of 2021 when memecoins such as Dogecoin grew in popularity. In the second quarter, the company reported that digital assets accounted for more than 50% of trade-based profits, while more than 60% of users traded crypto during this period.
Interestingly, 62% of the $233 million revenue came from Dogecoin – a meme-inspired token, which by that time hit an all-time high price of $0.74.
The Shiba Inu-inspired digital currency lost ground in the third quarter and, unsurprisingly, Robinhood’s crypto revenue fell to $51 million. Nevertheless, Tenev decided not to focus on this crisis as the company aimed to introduce more services:
“This quarter was about developing more products and services for our customers, including crypto wallets.”
