34% of Robinhood’s crypto revenue came from dogecoin transactions in Q1

Robinhood Markets revealed the growth in dogecoin transactions this year in its IPO prospectus on Thursday. 

The company that popularized crypto-trading declared that 17% of transaction-based revenue in the latest quarter came from cryptocurrencies. This is an increase of 3% as compared to the past year.

Out of the cryptocurrency business, 34% of the revenue was generated via dogecoin transactions. Dogecoin-derived income accounted for 6% of the company’s overall revenue.

Dogecoin originated as a joke currency but its value surged. The currency was further popularized by Tesla CEO Elon Musk, popularly known as the Dogefather.

The company acknowledged that its business could be hurt “if the markets for dogecoin deteriorate or if the price of dogecoin declines, including as a result of factors such as negative perceptions of dogecoin or the increased availability of dogecoin on other cryptocurrency trading platforms.”

Overall, the app’s cryptocurrency assets shot up in Q1 on a year-over-year basis from $480.7 million to $11.6 billion. The app reported revenue of $522 million during the first quarter of 2021, as compared to $128 million in the same period in 2020.

Robinhood first introduced crypto trading in 2018. It generates its earnings in cryptocurrency by routing orders to market makers that the company says offer “competitive pricing” and taking a percentage of the order value, as reported by CNBC. The trading app offers seven cryptocurrencies, including bitcoin, ethereum, and litecoin. It does not allow users to transfer cryptocurrencies into or out of the app.