The revenue from crypto trading at Robinhood dropped dramatically in the third-quarter, continuing a pattern that has been seen since 2023.
The investing app’s transaction-based revenues on cryptocurrencies declined to $23 million, Robinhood said in a Tuesday news release — a 55% fall from the prior quarter.
The decrease in revenue is more apparent for the crypto segment. Robinhood’s transactional revenues on equities fell by 13% from quarter to quarter.
During the first three-month period of 2023, crypto trading revenues for the company fell by approximately 1%. They were $38 millions. They dropped to $11 million for the second half of the year, and then again in the third quarter.
Vlad Tenev, CEO of Robinhood said that during the earnings call held on Tuesday, the company was focusing its efforts to improve user experience for crypto investors.
“We’re going to continue to innovate and improve the offering in this space,” He noted. “I think there are lots of promising signs and lots of people spending time building the industry. We’re going to continue to be a leader there.”
Jason Warnick Chief Financial officer of Robinhood said more regulatory clarity regarding crypto will be beneficial for Robinhood “to innovate even faster.”
Robinhood’s crypto-trading isn’t the only slowdown.
Coinbase’s third-quarter total revenue was down by 12% compared to the previous three-month period. In a letter to shareholders sent last week, the exchange stated that low volatility in addition to the wider “macro backdrop” negatively impacted spot market trading volumes.
Robinhood began crypto trading with Bitcoin and Ether in February 2018. The company does not charge any commissions on these trades.
In June, the company stopped supporting cardano(ADA), polygon(MATIC), and solana. This was after Binance and Coinbase were sued by the Securities and Exchange Commission for allegedly registering unregistered cryptoassets.
Robinhood still appears to be committed in the crypto-space. In a Tuesday press release, Robinhood announced that it will launch crypto trading in Europe in the next few weeks.
“Crypto benefits from a relatively clear regulatory framework in the EU and we’re excited to bring our capabilities across the pond to better serve that market,” Tenev spoke during the phone call.
Users of the self-custody Web3 Wallet can now use Bitcoin and Dogecoin to receive, send or store cryptocurrency.
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