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 proof by publishing its quarterly results on August 11, 2026. Indeed, the decline in crypto trading volume contrasts with the increase in interest in stocks and other more conventional investments. This transition requires the large FinTech company to quickly strengthen its diversification while revealing the new balance of power being formed in the field of online brokerage.
In brief
- In the second quarter of 2026, eToro recorded a 30% drop in crypto revenues, driven by a collapse in individual transactions and a marked drop in average amounts invested.
- To counter this slowdown, the platform is relying 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 net profit up 77%, the market sanctioned the eToro title on Wall Street in reaction to the slump in its historic digital division.
- This sequence confirms the end of pure dependence on crypto brokerage fees and imposes on brokers a sustainable multi-asset model to cope with the volatility of the cycles.
The great decline in crypto volumes and revenues at eToro
The second quarter marks a setback of unprecedented magnitude for the crypto division of the Israeli broker eToro. Consolidated data released by the company reveals overall revenue of $1.59 billion for the period ended June 30, up from $2 billion a year earlier. Overall, revenues generated by crypto trading stood at $1.34 billion, a net drop of 30% compared to the $1.9 billion recorded in the second quarter of 2025.
This contraction in activity immediately had an impact on the segment’s operating margins. Faced with a direct cost of crypto revenue reaching $1.35 billion, the bottom line plummeted to $19.7 million, a far cry from the $27 million recorded the previous year. Investor disaffection further deepened at the start of the third quarter, with the company reporting just 1.4 million crypto transactions for the month of July 2026, a 73% year-on-year collapse, coupled with a 50% drop in the average amount invested per transaction, falling to $182.
This quantitative 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 collapsed to only 11% of total commissions. The drying up of volatility and the wait-and-see attitude of small holders have thus dried up order flows on token pairs, reducing the contribution of crypto to the broker’s economic model to a historically low level. In addition, the segment’s gross profitability has become marginal, demonstrating the extent to which the decline in liquidity among individual investors can impact an incumbent operator when speculative activity suddenly contracts.
Detailed on-chain analysis of activity indicators over the period reveals the key markers of this operational slowdown :
- Revenues from the crypto division: $1.34 billion in Q2 2026, marking a decline of 30% compared to Q2 2025;
- The crypto segment’s net income: $19.7 million, weighed down by a direct cost of revenue of $1.35 billion;
- The volume of activity in July 2026: 1.4 million transactions recorded, down 73% year-on-year;
- The average amount per crypto transaction: $182 in July 2026, reflecting a drop of 50%;
- The 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 the crypto slowdown, eToro was able to rely on the spectacular rise of traditional financial markets within its multi-asset model. Commissions from stock trading thus increased to reach 60% of the group’s total commissions in Q2 2026, compared to only 25% at the end of 2024, driven by a net trading result of $141 million on stocks and commodities. This rotation of investment flows is part of a transversal dynamic formalized by the company’s financial management.
On the sidelines of the presentation of the results, Meron Shani, the company’s financial director, underlines the increasing porosity between asset classes: “more than 60% of users who traded commodities between Q4 2025 and Q1 2026 then traded stocks in Q2 2026, and almost nine in ten of them also traded crypto on eToro”.
Alongside this internal dynamic, the group is pursuing an offensive policy of strategic acquisitions to expand its geographic and technological footprint. eToro notably announced the acquisition of the American broker TradeZero in order to strengthen its presence among asset traders in the United States, a target generating $80 million in annual turnover with a gross margin of 81%. This operation completes the finalization, at the end of April 2026, of the acquisition of the company Zengo, specialized in self-hosted portfolios. Thanks to this double impulse, eToro seeks to secure recurring growth drivers, capable of neutralizing the cyclicality inherent in crypto markets.
A consolidated financial statement and the outlook for a changing market
On an overall accounting level, eToro’s diversification has borne fruit by preserving the group’s net profitability. The company reports GAAP net income up 77% to $53.4 million and adjusted EBITDA up 9% to $78.1 million for the second quarter of 2026. The balance sheet remains strong, supported by $1.2 billion in free cash flow and $19.2 billion in assets under administration.
However, the marked deterioration in crypto dynamics has had an impact on eToro (NASDAQ: ETOR) stock. The stock immediately suffered marked withdrawals, losing between 5% and more than 8% in pre-opening trading on August 11, to stabilize its price around $31.20.
This financial sequence marks a structural turning point for the FinTech ecosystem and highlights the end of hyper-dependence on crypto brokerage fees alone for mainstream exchanges. The trajectory of eToro demonstrates that while diversification towards TradFi offers an essential safety cushion to weather periods of lethargy in the crypto market, the loss of momentum on these assets weighs heavily on the valuation perceived by institutional investors.
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