Due to a drop in trade volume and price of Dogecoin, Robinhood’s cryptocurrency revenue has dropped dramatically.

Fee-free trading platform that is widely used In the third quarter of 2021, Robinhood’s crypto revenue dropped by 78 percent compared to the previous quarter’s figures. In the third quarter, Robinhood made $51 million (approximately Rs. 382 crores), compared to $233 million (about Rs. 1,745 crores) the previous quarter. The exchange ascribed the sharp drop to a drop in the price of Dogecoin, the meme-based cryptocurrency whose meteoric rise in popularity earlier this year boosted user sign-ups.

In May 2021, the price of Dogecoin soared by 900 percent in less than a month, reaching an all-time high of $0.7376. (roughly Rs. 55.33). Prices have dropped dramatically in the months since then, staying at $0.20 (about Rs. 15) in recent weeks. In the second quarter of the year, Dogecoin (DOGE) accounted for 62 percent of Robinhood’s total digital asset trading income, therefore DOGE’s recent decline undoubtedly contributed to Robinhood’s lower third-quarter revenue.

Overall, Robinhood made $365 million (approximately Rs. 2,738 crores) in the third quarter, down from $565 million (about Rs. 4,238 crores) the previous quarter, but still greater than its Q3 earnings the previous year. Total net sales were up 35% year over year in the third quarter, while crypto transaction revenues were up 860% compared to the same time in 2020. To add to the good news, business representatives revealed that more than 1 million users had already signed up for the firm’s impending crypto wallet queue.

Market volatility, retail trading behavior, and unforeseen market occurrences have all had an influence on Robinhood’s business, and this is expected to continue in the next quarter. In after-hours trading, shares of Robinhood, which began trading in July, plunged 8.4 percent to $36.25 (approximately Rs. 2,719), falling below its initial public offering price of $38 (about Rs. 2,850).

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