The American financial services firm – Robinhood – announced that its cryptocurrency trading revenue for the fourth quarter of 2021 totaled $48 million. In comparison, this volume equaled $51 million in Q3.
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 the recently presented results, crypto revenue was $48 million in Q4, 2021, or 6% less than the previous quarter. The company also missed the $55 million Wall Street expectations. Following the decline, Robinhood shares dropped 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.
The cryptocurrency services which Robinhood provides skyrocketed in popularity throughout 2021. Currently, users of the platform can purchase numerous assets such as Bitcoin (BTC), Ethereum (ETH), Dogecoin (DOGE), and many more.
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’ve been doing a lot of work behind the scenes to provide our crypto customers with the functionality that they’ve been 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.
Robinhood’s cryptocurrency revenue was thriving mainly in the second quarter of 2021 when memecoins such as Dogecoin surged in popularity. In Q2, the company informed that digital assets made up over 50% of transaction-based profit, while more than 60% of the users traded crypto during that 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 some ground in Q3, and unsurprisingly Robinhood’s crypto revenue decreased to $51 million. Nevertheless, Tenev decided not to focus on this slump as the firm aimed at introducing more services:
“This quarter was about developing more products and services for our customers, including crypto wallets.”