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Crypto Trading Just Hit eToro Where It Hurts

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The contraction of the crypto market no longer only affects investors. It now threatens the financial structure of the main trading platforms. eToro provided concrete evidence by publishing its quarterly results on August 11, 2026. Indeed, the decline in crypto trading volume contrasts with the increased interest in stocks and other more conventional investments. This transition forces the major FinTech company to quickly strengthen its diversification while revealing the new emerging power dynamics in the online brokerage field.

In brief

In the second quarter of 2026, eToro records a 30% drop in its crypto revenues, driven by a collapse in retail transactions and a marked decline in average invested amounts.
To counter this slowdown, the platform relies on a strong rotation of its users towards stocks and commodities, while accelerating its strategic acquisitions with TradeZero and Zengo.
Although this diversification preserves the group’s overall profitability with a net profit up 77%, the market penalized eToro’s stock on Wall Street in reaction to the slump of its historic digital unit.
This sequence confirms the end of pure dependence on crypto brokerage fees and requires brokers to adopt a sustainable multi-asset model to cope with cycle volatility.

The major retreat of crypto volumes and revenues at eToro

The second quarter marks an unprecedented halt for the crypto division of the Israeli broker eToro. Consolidated data published by the company reveal total revenues of 1.59 billion dollars for the period ended June 30, compared to 2 billion dollars one year earlier. Within this, revenues generated by crypto trading stood at 1.34 billion dollars, representing a sharp 30% drop from the 1.9 billion dollars recorded in the second quarter of 2025.

This contraction in activity immediately impacted the segment’s operating margins. Facing a direct cost of crypto revenues reaching 1.35 billion dollars, net income plummeted to 19.7 million dollars, far from the 27 million dollars recorded the previous year. Investor disaffection further intensified at the start of the third quarter, with the company reporting only 1.4 million crypto transactions in July 2026, a collapse of 73% year-on-year, coupled with a 50% drop in the average amount invested per transaction, down to 182 dollars.

This recorded decline reflects a profound transformation in user behavior on the platform, characterized by a massive shift towards other asset classes. While cryptos still represented exactly half of eToro’s trading commissions in the last quarter of 2024, their share has collapsed to only 11% of total commissions. The drying up of volatility and the cautiousness of small investors have thus dried up order flows on token pairs, reducing crypto’s contribution to the broker’s business model to a historically low level. Moreover, the segment’s gross profitability has become marginal, demonstrating how much the drop in liquidity among retail investors can impact a historic operator when speculative activity suddenly contracts.

The on-chain analysis of activity indicators over the period reveals the key markers of this operational slowdown :

Crypto division revenues : 1.34 billion dollars in Q2 2026, marking a 30% decline from Q2 2025 ;
Net income for the crypto segment : 19.7 million dollars, weighed down by a direct cost of revenues of 1.35 billion dollars ;
Activity volume in July 2026 : 1.4 million transactions recorded, down 73% year on year ;
Average amount per crypto transaction : 182 dollars in July 2026, reflecting a 50% drop ;
Share of trading commissions : a collapse of crypto to 11% of the total in Q2 2026, compared to 50% in Q4 2024.

The multi-asset response : diversification and external growth

To absorb the shock of crypto slowdown, eToro relied on the spectacular rise of traditional financial markets within its multi-asset model. Commissions from stock trading rose to reach 60% of the group’s total commissions in Q2 2026, compared to only 25% at the end of 2024, supported by net trading income of 141 million dollars in stocks and commodities. This rotation of investment flows is part of a cross-cutting dynamic formalized by the company’s financial management.

Alongside the results presentation, Meron Shani, the company’s Chief Financial Officer, emphasized the increasing permeability between asset classes: “more than 60% of users who traded commodities between Q4 2025 and Q1 2026 then traded stocks in Q2 2026, and nearly nine out of ten of them also traded cryptos on eToro”.

Alongside this internal dynamic, the group pursues an aggressive strategic acquisition policy to expand its geographical and technological footprint. eToro notably announced the purchase of the American broker TradeZero to strengthen its presence with asset traders in the United States, a target generating 80 million dollars in annual revenue with a gross margin of 81%. This operation complements the completion, in late April 2026, of the acquisition of Zengo, specialized in non-custodial wallets. Thanks to this dual impetus, eToro seeks to secure recurring growth drivers capable of neutralizing the inherent cyclicality of crypto markets.

A consolidated financial statement and the outlook of a market in full mutation

On the overall accounting level, eToro’s diversification has paid off by preserving the group’s net profitability. The company reports a GAAP net profit up 77% to 53.4 million dollars and an adjusted EBITDA rising 9% to 78.1 million dollars for the second quarter of 2026. The balance sheet remains solid, supported by 1.2 billion dollars in available cash and 19.2 billion dollars in assets under administration.

However, the marked deterioration of crypto dynamics impacted eToro’s stock (NASDAQ: ETOR). The stock immediately suffered significant selloffs, losing between 5% and more than 8% in pre-market trading on August 11, to stabilize around 31.20 dollars per share.

This financial sequence marks a structural turning point for the FinTech ecosystem and underlines the end of hyper-dependence on crypto brokerage fees alone for retail exchanges. eToro’s trajectory shows that while diversification towards TradFi provides an essential safety cushion to weather crypto market lethargy periods, the slowdown on these assets weighs heavily on the valuation perceived by institutional investors.

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Diplômé de Sciences Po Toulouse et titulaire d'une certification consultant blockchain délivrée par Alyra, j'ai rejoint l'aventure Cointribune en 2019. Convaincu du potentiel de la blockchain pour transformer de nombreux secteurs de l'économie, j'ai pris l'engagement de sensibiliser et d'informer le grand public sur cet écosystème en constante évolution. Mon objectif est de permettre à chacun de mieux comprendre la blockchain et de saisir les opportunités qu'elle offre. Je m'efforce chaque jour de fournir une analyse objective de l'actualité, de décrypter les tendances du marché, de relayer les dernières innovations technologiques et de mettre en perspective les enjeux économiques et sociétaux de cette révolution en marche.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.

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