Robinhood's CEO, Vlad Tenev, has made a bold prediction about the future of prediction markets, suggesting that cryptocurrencies will surpass sports in popularity. During an interview on Mad Money, Tenev noted that crypto contracts are quickly gaining traction within the platform's prediction markets, which he believes will increasingly draw users away from traditional sports betting.
In the second quarter, Robinhood reported a staggering year-on-year revenue increase of over tenfold for event contracts, reaching $156 million. This segment has become the company's fastest-growing area. In August alone, trading volumes for these contracts soared to 4.7 billion, a significant jump compared to the previous year. Meanwhile, revenue from crypto trading has seen a decline during the same period.
Robinhood operates on three platforms: it started with Kalshi, then added Rothera, its joint venture with Susquehanna, and recently acquired minority stakes in Crypto.com and OG.com, which will help with trade clearing and settlement.
