Online brokerage Robinhood Markets Inc. (NASDAQ:HOOD) said that meme cryptocurrency Dogecoin (CRYPTO: DOGE) accounted for 62% of its cryptocurrency transaction-based revenue in the second quarter.
What Happened: Robinhood, which announced its first earnings results as a public company on Wednesday, said that second-quarter revenue from cryptocurrencies soared to $233 million from $5 million in the year-ago period and accounted for almost 52% of the company’s transaction-based revenues.
62% of Robinhood’s cryptocurrency transaction-based revenue came from Dogecoin in the quarter, compared to 34% in the preceding first quarter.
See Also: How To Buy Dogecoin (DOGE)
Robinhood also noted that a larger share of new customers placed their first trade in cryptocurrency rather than equities in the second quarter.
Why It Matters: Robinhood’s quarterly results show that the company has benefited immensely from the rise in popularity of Dogecoin this year.
In fact, Robinhood highlighted its reliance on Dogecoin by warning that its business may be adversely affected if the markets for Dogecoin deteriorate or if the price of the cryptocurrency declines.
The brokerage has been facing increasing calls to enable Dogecoin wallets. CEO Vladimir Tenev addressed tbe matter on the earnings call, saying that it’s something our teams are working on but dubbed such a move “challenging.”
“Offering crypto wallets and the ability to deposit and withdraw cryptocurrencies is tricky to do at scale, we want to make sure it’s done correctly and properly,” Tenev said on the call. “And we want to make sure that everything from a security and operations standpoint is as bulletproof as possible, because our top value is safety first.”
Dogecoin’s year-to-date gains are an impressive 5,272.9%. However, the Shiba Inu-themed is currently down 59.2% from its all-time high of $0.7376 reached in May.
Dogecoin is currently ranked seventh among the world’s largest cryptocurrencies with a market capitalization of almost $40 billion, as per CoinMarketCap data.
Price Action: Dogecoin is up 4.2% during the past 24 hours, trading at $0.3054 at press time.
Photo: Courtesy of Robinhood