- Robinhood’s crypto trading revenue fell 55% quarter-over-quarter to $23 million in Q3 2022, continuing a downward trend seen throughout 2022.
- The 55% drop marks the steepest decline yet for Robinhood’s crypto revenues as the “crypto winter” drags on.
- Despite revenue declines, Robinhood appears committed to crypto, planning EU launch and expanding Web3 wallet features.
Robinhood‘s crypto trading revenue has continued its downward trend seen throughout 2022. According to the company’s latest earnings release, its transaction-based revenue from cryptocurrency trading fell 55% quarter-over-quarter to just $23 million in Q3 2022.
Robinhood’s Declining Crypto Revenues
Robinhood’s crypto trading revenue had already declined from $38 million in Q1 2022 to $31 million in Q2. The latest 55% drop in Q3 marks the steepest decline yet as the “crypto winter” drags on.
The company’s transaction revenue from equities trading also fell quarter-over-quarter, but by a more modest 13%. This highlights how the crypto bear market has impacted Robinhood’s crypto business disproportionately.
Robinhood is Not Alone in Seeing Slowdown
Robinhood isn’t the only crypto trading platform experiencing a downturn. Coinbase’s total transaction revenue fell 12% quarter-over-quarter in Q3 2022. In its shareholder letter, Coinbase cited low volatility and the macroeconomic environment as headwinds for spot trading volumes.
Ongoing Commitment to Crypto
Despite the revenue declines, Robinhood appears committed to the crypto space. The company plans to launch crypto trading in the EU in the coming weeks. It also recently enabled Bitcoin and Dogecoin transfers on its self-custody Web3 wallet.
The revenue declines likely reflect dampened retail enthusiasm for crypto trading amid low prices and volatility. However, Robinhood seems focused on building for the long-term as it expands into new markets.
