EToro to buy TradeZero as Q2 crypto revenue falls 30%

cointelegraphPubblicato 2026-08-11Pubblicato ultima volta 2026-08-11

Introduzione

eToro plans to acquire US online brokerage TradeZero as part of its US expansion. In its Q2 report, eToro's revenue fell to $1.59 billion from $2 billion in the year-ago period. Revenue from crypto assets specifically dropped about 30% to $1.34 billion. Despite this, the platform reported net income of $53.4 million overall, with $19.7 million coming from crypto assets. The company noted that many users who trade commodities or equities also trade crypto on its platform. However, crypto trading volume in July fell 73% year-on-year. TradeZero generated about $80 million in revenue with high margins over the past year, and eToro expects the acquisition to boost earnings per share after its expected close in the first half of 2026.

Trading platform eToro plans to acquire US online brokerage TradeZero as part of its US expansion plans, the company announced Tuesday.

In its second-quarter report, eToro reported $1.59 billion in revenue, down from $2 billion in the comparable 2025 period. Of that, $1.34 billion was revenue from crypto assets, down about 30% from $1.9 billion in Q2 of 2025. However, eToro reported $1.35 billion in crypto-related cost of revenue and $19.7 million in net income from crypto assets. Total net income was $53.4 million.

Equities and commodities-related trading generated $141 million in net income for the platform.

The company has been expanding into digital assets as part of its plans to become a multi-asset platform. In April, it announced plans to acquire self-custodial wallet provider Zengo.

“More than 60% of users who traded commodities during Q4 2025 to Q1 2026 subsequently traded equities in Q2 2026, and nearly nine in ten of those users have also traded crypto on eToro,” said Meron Shani, the chief financial officer at eToro.

Total cryptocurrency trades on the platform fell to 1.4 million in July, marking a 73% decline year-on-year. The invested amount was down 50%.

TradeZero generated about $80 million of revenue with 81% gross margins in the last 12 months ended June 30, 2026. EToro expects the deal to be accretive to adjusted earnings per share in the first year after closing, which is expected in the first half of 2026.

The Nasdaq-traded ETOR shares were down more than 5% in pre-market activity on Tuesday, poised to extend Monday’s decline, according to Yahoo Finance data.

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Domande pertinenti

QWhat is the main strategic move announced by eToro, and what is its stated purpose?

AeToro announced plans to acquire U.S. online brokerage TradeZero. The stated purpose is as part of its U.S. expansion plans.

QBy what percentage did eToro's Q2 revenue from crypto assets fall year-over-year, and what were the specific figures?

AeToro's Q2 revenue from crypto assets fell by about 30% year-over-year, from $1.9 billion in Q2 2025 to $1.34 billion in the reported Q2.

QAccording to CFO Meron Shani, what trend was observed among users who traded commodities between Q4 2025 and Q1 2026?

AAccording to CFO Meron Shani, more than 60% of users who traded commodities during Q4 2025 to Q1 2026 subsequently traded equities in Q2 2026, and nearly nine in ten of those users have also traded crypto on eToro.

QWhat were the key financial metrics reported for TradeZero in the 12 months ended June 30, 2026?

AIn the 12 months ended June 30, 2026, TradeZero generated about $80 million in revenue with 81% gross margins.

QHow did the performance of cryptocurrency trades on eToro change in July compared to the previous year?

ATotal cryptocurrency trades on eToro fell to 1.4 million in July, marking a 73% decline year-on-year, with the invested amount down 50%.

Letture associate

Hyperliquid is Strongly Strangling HyperEVM

The article analyzes the apparent failure of HyperEVM, the application engine of the Hyperliquid blockchain, contrasting it with the success of its core trading engine, HyperCore. Hyperliquid operates on a dual-engine architecture. HyperCore is a closed, high-performance order-book exchange for perpetuals and spot trading, which dominates on-chain volume and generates massive fees. HyperEVM, launched in February 2025, is an EVM-compatible layer meant for DeFi applications like lending and DEXs, which can access HyperCore's liquidity. Despite Hyperliquid's overall strength in a bear market, a stark divergence exists: * **HyperCore (Trading):** Captures over half of on-chain perpetual volume, generating ~$56M in fees over 30 days. * **HyperEVM (Applications):** All DeFi protocols combined generate less than $60M in fees. TVL is shrinking, daily active addresses are low (~8k), and the ecosystem lacks diversity. The DEX sector is particularly anemic, with most volume concentrated in a single protocol. The article identifies four key reasons for HyperEVM's struggles: 1. **Core Monopoly on Execution:** HyperCore exclusively handles order matching. This makes native DEXs on HyperEVM redundant and limits viable applications to those leveraging its order book (e.g., staking, lending). 2. **Architectural Concentration:** Shared liquidity across interfaces naturally leads to a "winner-takes-most" outcome, explaining the high concentration in both the trading (e.g., trade.xyz) and application layers. 3. **"No Insider" Philosophy:** Hyperliquid's commitment to fair launch means it provides no grants, business development, or marketing support to ecosystem projects, stunting growth. 4. **Complex Developer Experience:** The asynchronous design between HyperEVM and HyperCore (via the CoreWriter contract) creates non-standard development hurdles, as EVM transactions don't roll back if the core action fails. The conclusion is that HyperEVM's weakness is a deliberate trade-off, not an accident. Hyperliquid prioritized building an unbeatable trading engine, sacrificing the development of a broad, independent application ecosystem. HyperEVM functions more as a tokenization layer for HyperCore's liquidity rather than a general-purpose chain. The debate isn't whether it's "dead"—it serves a niche—but whether Hyperliquid ever intended to build a thriving, diverse DeFi ecosystem beyond its core trading product.

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Hyperliquid is Strongly Strangling HyperEVM

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UltraPure Applied Materials Lists on Shenzhen Stock Exchange: Annual Revenue of 5 Billion, Post-Adjustment Net Profit of 2 Billion, Market Cap of 51.2 Billion

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UltraPure Applied Materials Lists on Shenzhen Stock Exchange: Annual Revenue of 5 Billion, Post-Adjustment Net Profit of 2 Billion, Market Cap of 51.2 Billion

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