Robinhood investors fall out of love with Dogecoin, as it drops from 32% of revenue to just 8%

On Friday, the Menlo Park, Calif.-based brokerage disclosed that transaction-based revenues attributable to Dogecoin, a Shiba Inu-themed token that was created as a joke, represented 8% of its total net revenues of $364.9 million in the third quarter. And while about $30 million is still significant amount for what is ultimately a fledgling asset, it marks a significant pullback from the second quarter, when Robinhood collected 32% of its total revenues from Dogecoin transactions.

Within Robinhood’s cryptocurrency business, Dogecoin took on a staggering level of importance in the first half of the year—having accounted for 62% of Robinhood’s crypto transaction-based revenues in the second quarter and 34% in the first. In the third quarter, Dogecoin was about 40% of the unit’s revenues, Robinhood said Friday.

Crypto has become an increasingly central component of Robinhood’s business in recent years.

The brokerage, which now offers trading in seven different tokens, is gearing up to roll out a crypto wallet in the coming weeks—a move that would open up the crypto markets more broadly to Robinhood customers. Executives have said that the waitlist for a Robinhood crypto wallet has already toppled 1 million people after opening up just a few weeks ago.

In introducing a digital wallet, Robinhood could also be clearing the way for the addition of new tokens on its app, including Shiba Inu coin, a play on Dogecoin that has surged in recent weeks amid a flood of individual investor interest. A Change.org petition created to get Robinhood to list the crypto has so far amassed 416,000 signatures out of its half million goal. But CEO Vlad Tenev and the brokerage company’s executive team have signaled they’re not quite there, yet.

“We feel very, very good about the coins that we’re currently listing on our platform,” Tenev said Tuesday on the company’s latest earnings conference call. “For any new coins that we add, we want to feel equally, if not more good.”