Robinhood Reports 224% Surge in Crypto Trading Volumes in Q1
Popular trading platform Robinhood has experienced a substantial increase in crypto trading volumes during the first quarter, with a surge of 224% to reach $36 billion.
The growth played a significant role in driving the company’s transaction-based revenue up 59% year-over-year to $329 million, with crypto-related revenue alone witnessing a substantial 232% rise to $126 million, according to Robinhood’s recent report.
The surge in crypto trading volumes on Robinhood’s platform comes as no surprise, as other publicly traded crypto peers such as Coinbase have also reported impressive first-quarter performances due to the improving conditions in the crypto market.
In addition to the surge in trading volumes, Robinhood announced that it held $26.2 billion in users’ crypto assets under custody as of March 31, marking a notable 78% increase from the end of 2023.
These figures demonstrate the growing interest and participation in cryptocurrencies among Robinhood’s user base.
The positive performance in crypto trading significantly contributed to Robinhood’s overall financial success for the first quarter.
The company exceeded expectations, reporting $618 million in revenue, surpassing analyst estimates of $552.7 million.
Additionally, Robinhood’s earnings for the quarter stood at $0.18 per share, exceeding the average analyst expectation of $0.06.
Following the release of these impressive financial results, shares of Robinhood saw a post-market trading increase of approximately 7%, while Coinbase shares experienced a slight decline.
Year-to-date, Robinhood’s stock has risen by about 40%, while Coinbase has gained 22%.
However, amidst the positive news, Robinhood recently disclosed that it has received a Wells Notice from the U.S.
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