In the first quarter, Robinhood saw its cryptocurrency-related revenue drop by 30%. Let’s take a closer look at these figures, showing that the platform failed to take advantage of the market rally at the start of the year.
Robinhood’s cryptocurrency revenue drops
Robinhood presented its quarterly report, in which we can see that the platform has achieved $38 million in cryptocurrency trading revenue between January 1 and March 31.
While the market benefited from a positive start to the year, users seem to have turned away from the platform. And for good reason, these same revenues were $54 million in the last quarter of 2022, resulting in a 30% reduction.
More broadly, Robinhood’s overall transaction revenue was $207 million last quarter, compared to $218 million last quarter. The company’s total revenues are up just over 47% to $441 million.
👉 To go further — Find our guide to buying Bitcoin (BTC)
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$11.5 billion in deposits
As of March 31, Robinhood had nearly $11.5 billion in cryptocurrencies for its customers. In comparison with December 31, 2022, this statistic represents an increase of more than 36% over the previous $8.4 billion.
However, like what we saw for PayPal yesterday, this progression must be put into perspective. Indeed, with total cryptocurrency market capitalization up over 50% in Q1, and over 72% for Bitcoin (BTC) alone, we’re pretty much there. facing a drop in deposits at Robinhood.
However, this drop in deposits in terms of the quantity of cryptocurrencies is not completely homogeneous. Here is a table showing the evolution of the different assets in comparing it to market performance to better understand the situation:
| Cryptocurrencies | Deposits as of December 31 (billions of dollars) | Deposits as of March 31 (billions of dollars) | Variation | Performance of the asset over this period |
| Bitcoin (BTC) | 2, 327 | 3,887 | + 67% | +72.26% |
| Ether (ETH) | 2, 341 | 3,292 | + 40.62% | + 52.5% |
| Dogecoin (DOGE) | 2, 802 | 3,017 | +7.67% | + 9.55% |
| Other | 0.961 | 1,293 | + 34.54% | / |
So Robinhood didn’t know so much capitalize on the progress of the crypto market at the start of the year. As the company deploys more and more Web3 solutions, the next financial statements will allow us to judge whether this will be enough to give it renewed appeal, in order to retain its users and attract new ones.
More generally, Robinhood’s stock is up 12.25% since January 1 at the time of this writing, with a market capitalization of nearly $8.13 billion. In the first quarter alone, this increase was 20.17%.
👉 On the same subject — Robinhood presents Connnect, its solution to link its platform to Web3 applications
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Source: Form 10-K
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I timidly discovered the world of blockchain at the end of 2018 during my quest for financial freedom. Initially invested moderately, it was only two years later that I took the gamble of betting everything on the movement that was taking shape then. I then dedicate 2021 to training myself better to acquire more knowledge and seriousness. As I often like to say: I still have a billion things to learn. And what I do know, I want to share with you.
Vincent Mayor
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