EToro’s crypto business hit a speed bump in the first quarter. The social trading platform reported crypto-related cost of revenue of roughly $2.1B, down 40% from $3.5B during the same period last year.
The decline reflects a broader cooling in retail crypto speculation following the bullish phase that characterized late 2025. Crypto sales have accounted for the majority of eToro’s revenue in recent quarters.
The drop in trading activity has been visible across major exchanges, with volatility compressing and retail participation waning compared to the heights of the previous rally.
EToro’s share price had surged 20.4% to $33.07 following a strong Q4 2025 earnings report, fueled by crypto-driven growth. The question now is whether the platform can sustain its growth story beyond crypto volume cycles.
EToro has diversified offerings including equities and ETF trading, but crypto has been the headline act. With user growth stabilizing and trading frequency declining, the high-margin crypto trading income that powered its recent success becomes harder to maintain.