That income determine is prone to explode within the second quarter, as dogecoin spiked more than 1,375% amid a surge in recognition partly pushed by tweets and a SNL appearance from Tesla CEO Elon Musk.
Robinhood’s vital income derived from dogecoin buying and selling is a purpose the meme-inspired cryptocurrency was included as a danger issue within the on-line buying and selling app’s IPO submitting.
“A considerable portion of the latest development in our internet revenues earned from cryptocurrency transactions is attributable to transactions in Dogecoin. If demand for transactions in Dogecoin declines and isn’t changed by new demand for different cryptocurrencies obtainable for buying and selling on our platform, our enterprise, monetary situation and outcomes of operations could possibly be adversely affected,” Robinhood warned potential buyers.
However that danger doubtless will not be felt by buyers within the second quarter of 2021, when cumulative each day buying and selling volumes in dogecoin soared 258%, primarily based on historic data from CoinMarketCap.
The buying and selling quantity in dogecoin within the first quarter of 2021 was $243 billion. On common, $2.7 billion price of dogecoin exchanged arms on any given day within the first quarter, and dogecoin was simply $0.05 on March 31.
Quick ahead to the second quarter, and the cumulative buying and selling quantity in dogecoin soared to $866 billion. On common, $9.5 billion price of dogecoin exchanged arms on any given day within the second quarter, and dogecoin peaked at about $0.74 on Could 8.
That might translate into Robinhood producing greater than $100 million in income from dogecoin transactions subsequent quarter. However a steep swing decrease in dogecoin income is probably going for Robinhood going ahead, provided that common each day buying and selling volumes in dogecoin has fallen to $5.8 billion since its peak.
Following a 80% decline in dogecoin, mixed with latest tweets from Elon Musk having little impact on its value, it appears unlikely dogecoin will ever generate as a lot income for Robinhood because it did over the previous six months.