eToro reported a significant 40% drop in its Q1 crypto-related revenue, falling to $2.1 billion from $3.5 billion the previous year. This decline reflects a broader market slowdown, with reduced trading volumes and waning retail participation following a bullish phase in late 2025. Crypto sales have been a major revenue driver for eToro, which saw a 16% increase in net income in Q4 2025, largely due to digital asset trading. The downturn in eToro's crypto revenue is part of a wider trend affecting major exchanges, as market volatility decreases and retail interest diminishes. Despite the recent challenges, eToro's share price had previously surged 20.4% to $33.07 after strong Q4 earnings, underscoring the volatility and potential of the fintech sector. As the company navigates this slowdown, it faces pressure to diversify beyond crypto to sustain growth.