Trading platform eToro has posted its strongest quarter since going public. The company announced that its net profit in the first quarter rose 37% year-over-year to $82 million. However, the results also show a significant cooling of interest in cryptocurrency trading, which the platform compensated primarily through sharp growth in commodities trading.
The company stated that adjusted EBITDA increased 35% year-over-year to $109 million, while the company’s net contribution reached $258 million, representing 19% growth. Commodities became the main growth driver, accounting for approximately 60% of all trading commissions on the platform during the first quarter. Meanwhile, commodities trading volume increased nearly fourfold year-over-year.
eToro also continued expanding its traditional investment product offerings. The company newly added Japanese stocks, now covering 26 exchanges worldwide. It also activated its BitLicense, enabling it to launch cryptocurrency trading in New York State.
The user base also grew. The number of funded accounts increased 12% year-over-year to 4.02 million, and assets under management rose 15% to $17 billion. At the end of March, the company had $1.3 billion in cash, cash equivalents, and short-term investments.
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Cryptocurrencies slowing down, trading volumes drop significantly
Alongside strong financial results, the company also released April data confirming the current cooling of the cryptocurrency market. Cryptocurrency trading volume on the eToro platform dropped 32% year-over-year to two million transactions. At the same time, the average invested amount per trade also decreased by 22% to $207.
The decline in interest in cryptocurrencies comes at a time when the entire market is undergoing a more significant correction. Total cryptocurrency market capitalization and trading volumes fell by more than 20% quarter-over-quarter according to available data.
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eToro bets on AI and blockchain integration
Despite the decline in cryptocurrency trading, the company continues to invest in new technologies. eToro introduced a new Agent Portfolios feature leveraging artificial intelligence while deepening its partnership with xAI. It has newly integrated Grok 4.2 technology into its AI investment assistant Tori, designed to provide users with real-time market sentiment analysis.
An important step was also the completion of the acquisition of Zengo, which develops self-custody cryptocurrency wallets. The transaction was closed on April 30 and, according to CEO Yoni Assia, aims to bridge traditional financial services with blockchain infrastructure.
In April, assets under management further increased to $18.7 billion, representing 19% year-over-year growth. Total cash transfers for the month reached $1.4 billion, up 53% year-over-year.
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Other crypto firms also report weaker results
The decline in cryptocurrency market activity wasn’t limited to eToro alone. Cryptocurrency exchange Coinbase reported a net loss of $394.1 million for the first quarter. This is its second consecutive loss, despite posting a profit of $65.6 million a year earlier.
Coinbase revenue reached $1.41 billion, falling short of analyst expectations. Transaction revenue plunged 40% year-over-year, while subscription and services income declined 13.5%.
Results from major cryptocurrency platforms thus suggest that 2026 has so far been far from as strong for digital assets as previous periods. While some investors are shifting capital into commodities or traditional stock markets, cryptocurrency companies are seeking new growth sources primarily in artificial intelligence, infrastructure, and expanding services beyond cryptocurrency trading itself.
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