Robinhood's crypto revenue drops 55% as prediction markets and blockchain surge ahead

Robinhood reported $120 million in cryptocurrency revenue for Q3, a 55% decline from the prior year, with trading volumes falling 38% year-over-year to $49.8 billion. However, the company's new Ethereum Layer 2 network, Robinhood Chain, generated over $50 million in transaction fees and contributed $26 million to crypto revenue, offsetting the decline. Meanwhile, prediction-market revenue surged more than sixfold year-over-year to $173 million, surpassing crypto as the platform's second-largest transaction-based revenue source.