eToro Q1 Crypto Revenue Drops to $2.15B as Trading Slows; Company Expands DeFi with Zengo Acquisition

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eToro Q1 Crypto Revenue Drops to $2.15B as Trading Slows; Company Expands DeFi with Zengo Acquisition

Mobile investment platform eToro reported first-quarter revenue from crypto assets of $2.15 billion, a significant decline from the $3.5 billion recorded in the same period last year. The 39% drop reflects a broader cooling in retail crypto trading activity that has also affected major competitors including Robinhood and Coinbase.

Declining Transaction Volumes

Alongside the revenue decline, eToro experienced a 32% year-over-year decrease in the number of crypto transactions processed during the first quarter. The downturn signals a shift in user behavior, with retail investors appearing less active compared to the heightened trading volumes seen in early 2024, which were fueled by bitcoin ETF approvals and renewed market optimism.

Strategic Expansion and Acquisition

Despite the quarterly slowdown, eToro has not retreated from its crypto ambitions. The company recently expanded its crypto trading services in New York, one of the most regulated U.S. markets. In a further sign of long-term commitment, eToro acquired crypto wallet provider Zengo for $70 million. The acquisition is aimed at strengthening eToro’s decentralized finance (DeFi) capabilities and offering users self-custody options.

Broader Industry Context

eToro’s results mirror a wider trend across the crypto trading industry. Robinhood reported a decline in crypto transaction revenue in its most recent quarter, while Coinbase also saw lower trading volumes compared to the same period last year. Analysts attribute the pullback to reduced volatility, regulatory uncertainty in certain jurisdictions, and a general wait-and-see approach among retail traders following the 2024 rally.

What This Means for Investors

For users of platforms like eToro, the declining revenue and transaction numbers suggest a quieter market environment, but also one where platforms are investing in infrastructure. The Zengo acquisition signals that eToro is positioning for the next phase of crypto adoption, particularly around DeFi and self-custody solutions. Investors should watch for how these strategic moves translate into user growth and revenue diversification in coming quarters.

Conclusion

eToro’s Q1 results reflect a normalization of crypto trading activity after an unusually strong 2024. While the top-line decline is notable, the company’s expansion in New York and its DeFi-focused acquisition suggest a strategy focused on long-term relevance rather than short-term trading volume. The coming quarters will reveal whether these investments can offset the cyclical nature of crypto trading revenue.

FAQs

Why did eToro’s crypto revenue decline in Q1 2025?
The decline is primarily due to lower retail trading activity, with the number of crypto transactions falling 32% year-over-year. This mirrors a broader industry slowdown affecting Robinhood and Coinbase.

What is eToro’s Zengo acquisition about?
eToro acquired crypto wallet provider Zengo for $70 million to expand its decentralized finance (DeFi) offerings and provide users with self-custody wallet solutions.

Is eToro still expanding in the U.S.?
Yes, eToro recently expanded its crypto trading services in New York, one of the most tightly regulated U.S. markets, indicating a continued push into the American market despite the quarterly revenue dip.

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