Investment app Robinhood’s cryptocurrency trading revenue fell sharply in the third quarter, continuing a trend seen throughout 2023.
According to Robinhood’s latest announcement on Tuesday, cryptocurrency-based trading revenue fell to $23 million, a 55% quarterly decrease.
The decline was even more pronounced in the cryptocurrency space, with Robinhood’s stock trading revenue down 13% from the previous quarter.
In the first three months of 2023, the company’s cryptocurrency trading revenue fell by about 1% to $38 million. In the second quarter, that revenue fell to $31 million, with the latest decline announced Tuesday.
CEO Vlad Tenev said during Robinhood’s earnings call on Tuesday that the company is committed to enhancing the user experience for cryptocurrency investors.
“We will continue to innovate and improve in this area,” he said. “I think there are a lot of promising signs and a lot of people taking the time to build this industry. We’re going to continue to be the leader here.”
Chief Financial Officer Jason Warnick also said that clearer cryptocurrency regulation will help Robinhood “innovate faster.”
Robinhood isn’t the only company having trouble trading cryptocurrencies.
Coinbase’s total trading revenue fell 12% in the third quarter compared with the previous three months. The exchange noted in a shareholder letter last week that low price volatility and a negative “overall global environment” impacted market closing volumes.
Robin Hood has Debut Cryptocurrency trading started in February 2018, starting with Bitcoin and Ethereum. The Company does not charge commission on these transactions.
Binance and Coinbase stopped supporting Cardano (ADA), Polygon (MATIC) and Solana (SOL) in June after the SEC sued them, alleging that certain crypto-assets were not registered as securities.
However, Robinhood appears to be committed to the cryptocurrency space. In an announcement on Tuesday, the company highlighted plans to launch cryptocurrency trading in the European Union in the coming weeks.
“Cryptocurrencies benefit from a relatively clear regulatory framework in the EU, and we are eager to leverage our capabilities to better serve this market,” Tenev said at the conference.
The company in August began allowing users of its self-hosted Web3 wallet to hold, send and receive cryptocurrencies using the Bitcoin and Dogecoin networks.
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