Robinhood’s new blockchain generated $26 million in revenue in its first quarter, offsetting the quarterly decline in crypto trading revenue and boosting total crypto revenue by 20%.
According to third-quarter results reported by The Block, Robinhood Chain, whose mainnet went live on July 1, generated $26 million for the company in its first three months. Excluding the network’s contribution, crypto trading revenue fell 6% from the previous quarter to $94 million.
The two items combined for $120 million in crypto revenue, 20% higher than in the second quarter. But the year-over-year comparison remains weak: total crypto revenue was still 55% lower than in the same period last year.
The new network generated about one-fifth of crypto revenue
Robinhood Chain’s $26 million contribution accounted for about 22% of total crypto revenue. Alongside the year-over-year decline shown in the third-quarter earnings report previously covered, this breakdown highlights the new network’s role in the quarterly recovery.
The layer-2 network built on Arbitrum generated more than $80 billion in decentralized exchange volume and over $50 million in network fees during the same period. The total fees generated on the network and the $26 million in revenue recorded by Robinhood are reported as different metrics.
Trading volume recovered from the previous quarter
Robinhood’s total crypto trading volume rose 23% from the second quarter to $49.8 billion. Of that, $20.6 billion came from the Robinhood app and $29.2 billion from Bitstamp.
The year-over-year volume decline noted in the earlier report and this quarterly increase compare different periods: crypto trading remained below last year’s level but recovered from the second quarter. Revenue from the new blockchain played a decisive role in offsetting the decline in trading revenue.
Not investment advice.