Robinhood grows despite crypto slump as Coinbase lags

Robinhood weathered the crypto market slowdown by successfully diversifying into prediction markets, while Coinbase posted weaker second-quarter results, The Block reported. Robinhood’s cryptocurrency trading revenue fell 37.5% from a year earlier to $100 million in the second quarter, but growth in options, equities and prediction markets helped keep total transaction-based revenue at a record-high $776 million. Its prediction-markets business in particular generated $156 million in revenue on the back of 13.6 billion contracts traded, surpassing its crypto segment for the first time. By contrast, Coinbase’s total second-quarter revenue came to $1.22 billion, its lowest since the third quarter of 2024. Total trading volume fell 24% from the previous quarter to its lowest level since the third quarter of 2023, with institutional and retail volumes both declining by the same rate. The divergence was seen as reflecting Robinhood’s success in reducing its reliance on crypto and broadening revenue sources through products tied to sports and political events.