Dogecoin is now Robinhood’s largest crypto money maker. Trading the meme coin accounted for 62% of the trading app’s crypto sales in the second quarter of the year. The coin had become popular when people needed a quick way to buy the coin. This followed the growing popularity of meme stocks like GameStop at the time. Which later eventually spread in meme coins.
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Robinhood had become very popular during the boom as the premier trading venue for GameStop stocks. Then when Dogecoin began to bounce back, users flocked to the trading app to invest. This led to tremendous growth for Robinhood. The app fell out of favor when trading in meme stocks and coins was suspended. But a good percentage of traders still favor the trading app. In addition, it is usually a starting point for new and young investors who are just starting out to invest.
Dogecoin trading has grown in the app. As the price has started rising again, investors are pouring back into the asset. Crypto trading has grown in the app. And trading with Doge has made up the bulk of the crypto trade that takes place on the platform.
Dogecoin leads crypto trading
Robinhood reported that crypto trading now represented 50% of its transaction-based revenue in the second quarter. An increase of over 250% over the reporter’s 17% in the first quarter. The growth is synonymous with the growth of cryptocurrencies among investors. Interest in the market has increased. And so this has expanded to include platforms that run crypto trading services.
Doge price drops below $ 0.30 again | Source: DOGEUSD on TradingView.com
Later on, Robinhood also reported that more than 60% of the accounts in the app had been trading crypto. In the second quarter alone. Dogecoin accounts for 62% of all user-conducted crypto trades. The income from crypto trading has also grown. Reported revenue for crypto trading in the second quarter was $ 233. 4,500% more than $ 5 million last quarter. 52% of sales from transaction-based sales.
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Total net sales for the company for the second quarter were $ 565 million. 131% more than in the second quarter of 2020.
Robinhood rises above the noise
The year 2021 was not the easiest for the trading app. Various issues from regulation to dissatisfied customers have shaken the company. Robinhood was fined $ 70 million back in June for causing “significant damage” to customers. The case was triggered by the suicide of a 20-year-old Robinhood customer who had committed suicide. Among other things, allegations were made against the company by FINRA.
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Another pressing issue is the issue of crypto ownership on the platform. Cryptos bought on Robinhood do not belong to the users who buy them. There is no wallet function on the Robinhood. So there is no way for the traders to transfer the crypto to Robinhood like they would on other exchanges. Buying crypto on the platform is often compared to trading a crypto derivative. While users think they are buying the coin, in reality they are only placing on the price of the meme coin.
Although noted, crypto traders continue to prefer the platform for trading crypto. Most likely due to the ease with which they can trade crypto through the app.