Crypto Now Drives 43% of Robinhood’s Revenue as Retail Traders Flood Back In

Robinhood’s Q1 2025 earnings report reveals crypto trading now accounts for nearly half its transaction revenue—proof that retail investors are diving back into digital assets despite Wall Street’s lingering skepticism.

The platform’s zero-commission model continues to attract Main Street traders, while traditional brokers scramble to explain why their 1% fees suddenly look medieval.

Memo to hedge funds: your ’volatility concerns’ might need updating—these diamond-handed amateurs just don’t care about your risk models.

Still, internal data and third-party liquidity metrics reflected a broadening of trading appetites. Bitcoin retained its dominance, capturing around 41% of crypto trading volume.

However, Ethereum, Dogecoin, Solana, and XRP completed the top five, indicating that traders ventured beyond Bitcoin in search of returns. Notably, Dogecoin volumes spiked in March, signaling renewed speculative interest.

Monthly figures revealed the pace of activity. January crypto volumes hit $20.4 billion, representing a 57% increase year-over-year despite a month-on-month dip.

February volumes cooled to $14.4 billion, yet this still reflected a 122% jump from the previous year. Together, these levels demonstrated durable retail interest despite moderating price momentum following Bitcoin’s earlier all-time high.

Robinhood vs Coinbase

Robinhood’s success contrasted sharply with Coinbase’s muted performance. Per Oppenheimer, Coinbase’s projected Q1 volumes were revised downward to $380 billion, representing a 13% quarter-over-quarter decline.

This divergence framed Robinhood as a key beneficiary of retail-led volatility trading, while Coinbase’s heavier institutional and fee-sensitive user base faced softer conditions. Despite Coinbase maintaining a 69% share of U.S. spot flows, its retail pullback highlighted shifting market forces.

Beyond volumes, Robinhood’s broader metrics reflected platform growth. Net income ROSE to $336 million, or 37 cents per share, from $157 million a year earlier.

Gold subscriptions hit a record 3.2 million, while assets under custody climbed 70% to $221 billion. Still, crypto represented 43% of transaction revenue, illustrating its central role in Robinhood’s earnings profile.

Market makers appeared cautious elsewhere. Kaiko reported that liquidity for tokens like RNDR, SHIB, and PEPE fell more than 50% as participants de-risked. Memecoin indicators were mixed.

While Dogecoin trading increased on Robinhood, both DOGE and SHIB saw declines in on-chain active addresses and transfer counts. SHIB’s exchange supply also reached a six-month high, suggesting subdued broader demand.

CEO Vladimir Tenev acknowledged the cyclical nature of crypto markets, noting Robinhood’s aim to diversify through expanded wealth products. He told Reuters,

“Customers are not only trading more with us, but they’re entrusting us with more of their assets.”

The company’s upcoming wealth-management suite is positioned to integrate crypto into retirement and advisory offerings, potentially embedding digital assets more deeply in everyday financial portfolios.

Robinhood’s performance illuminated evolving retail engagement. Institutional flows through spot ETFs have dominated headlines, yet Q1 revealed that grassroots traders continue to impact market activity. Whether this momentum persists as tariff concerns and macro volatility shift remains uncertain. For now, Robinhood’s results capture a retail resurgence that sets it apart from peers.