Dogecoin helped double Robinhood’s profits in the second quarter, memecoin accounted for 62 percent of the company’s $233 million encryption revenue
The Dogecoin (DOGE) cryptocurrency continues to rank number one in Robinhood’s crypto trading activities.
In its second-quarter earnings report, the US financial services company noted significant increases in its encryption revenue compared to last year.
The company said its numbers related to digital assets increased from $5 million in the second quarter of 2020 to about $233 million in the second quarter of 2021.
Dogecoin on the rise
Robinhood claims that cryptocurrencies accounted for more than half of its revenue in the second quarter of 2021, with an impressive 62% coming from DOGE transactions.
Now, DOGE’s share nearly doubled in the second quarter as the asset continued to receive public attention after several endorsements from billionaires like Elon Musk and Mark Cuban in recent months.
Robinhood anticipates 11% drop in third quarter
The California-based financial services company saw a huge increase in its revenue, in large part because of trading in cryptocurrencies, as indicated in its earnings report.
This growth has seen its user base grow significantly as more investors continue to invade the digital asset space in search of alternative investment options.
However, it warned investors in the earnings report that it expects less impressive third-quarter revenue given that the trading boom is gradually waning.
“For the three months ending September 30, 2021, we expect seasonal headwinds and lower industry-wide business activity to result in lower revenues and considerably fewer new accounts financed than in the previous quarter,” the company said.
After the warning, Robinhood shares plunged by more than 11%.