Robinhood Chain brings in $26 million as crypto revenue rises 20% in Q3

What happened

Robinhood reported Tuesday that crypto revenue rose 20% from the previous quarter to $120 million. Robinhood Chain, its layer 2 blockchain built on Arbitrum, brought in $26 million in its first quarter on mainnet after launching on July 1.

Confirmed

Global impact / market context

Robinhood Chain is a new business line that earned $26 million and processed over $80 billion in DEX volume, which means decentralized exchange trading. That helped crypto revenue grow 20% even as crypto transaction revenue fell 6% excluding the chain.

Analyst inference

Total crypto revenue remained down 55% from a year earlier, when crypto markets were near bull market highs. Event contracts generated $173 million, up 11% from the previous quarter and more than 6x from a year earlier, adding more revenue than crypto.

Analyst inference

What to watch

1. Crypto trading volumes rose 23% from last quarter to $49.8 billion, with $20.6 billion from the Robinhood app itself and $29.2 billion on Bitstamp, the exchange it acquired last year. Confirmed
2. Watch whether Robinhood Chain keeps adding fees after its first quarter on mainnet, since that new revenue helped offset a 6% decline in crypto transaction revenue. Proposed
3. Watch whether event contracts, which generated $173 million including $28 million from Rothera, keep adding more revenue than crypto and support total net revenue. Analyst inference

Affected assets

• ARB — Arbitrum

Evidence

• theblock.co