Crypto Revenue of Robinhood Drops by 39%
The well-known trading app Robinhood announced a drop in its trading crypto revenue. In the first three months of 2022, Robinhood’s crypto trading revenue fell by 39%. This is a result of the volatile markets. According to a press release, the app’s crypto business brought $54 million in revenue for the three months ending March 31. Overall, there was a 43% decline in revenue to $299 million. This indicates that tight trading conditions extend beyond the cryptocurrency markets. Market fluctuations dominated the first quarter of 2022. Also, there was a list of factors that impacted the market fluctuations. This list includes fears of rising inflation, a Federal Reserve that was more hawkish than usual, and the Russia-Ukraine war. Since the beginning of the year, the total value of the crypto market has decreased by $400 billion. However, Robinhood expects to expand its service and include more cryptocurrencies this year despite all the instability.
Robinhood Into Crypto Industry
Even in the face of volatility, Robinhood is looking to diversify its trading operations by entering the crypto market. More than 2 million people now have access to its crypto wallet. In addition, the wallet now supports the famous memecoin, Shiba Inu. As part of the app’s plan expansion into Europe, a UK-based cryptocurrency platform called Ziglu was purchased by the app. However, the company’s decision to enter the crypto market comes at a time when the retail trading boom, thus impacting the app’s user growth. If you look at the company’s monthly active users, they fell by 10% to 15.9 million. More statistics show a 62% drop in average income per user. As a result, this indicates that even those users who remained were using the app less frequently. Following the crypto industry, competition is tight for Robinhood’s foray into the cryptocurrency market. Some of the most established participants in the United States are FTX, Binance, and Coinbase. These platforms have a large customer base and offer a wide range of crypto-related services, such as staking and DeFi lending. Cryptocurrency makes up more than a quarter of Robinhood’s income. However, CEO Vlad Tenev says it is not a source of income. Instead, he says, the segment is a long-term attraction for new users. https://crypto-academy.org/crypto-revenue-of-robinhood-drops/?feed_id=4355