Robinhood reported a 55% annual decline in cryptocurrency trading revenue for the third quarter, but the result still beat analyst estimates as the company’s blockchain business continued to develop.

Crypto transaction revenue totaled $120 million, compared with approximately $267 million in the third quarter of the previous year. Despite the year-over-year drop, Robinhood exceeded Wall Street’s projected revenue of $114.1 million, according to its earnings report released Tuesday.

Cryptocurrency trading made up 8.4% of the company’s total revenue of $1.424 billion for the quarter, down from about 21% a year earlier.

The weaker performance reflected a slowdown in customer trading activity. Total cryptocurrency volume across Robinhood’s platforms fell 38% year over year to $50 billion. Trading volume on the Robinhood app dropped 48% to $21 billion, while Bitstamp recorded a 28% decline to $29 billion.

Options and prediction markets drive growth

While crypto-related income weakened, Robinhood’s other business segments helped lift overall revenue. The company’s third-quarter revenue increased 12% from the previous year to $1.424 billion, although it narrowly missed the $1.43 billion forecast from analysts.

Options trading revenue rose 31% to $399 million, and equities revenue increased 41% to $121 million. Prediction markets contributed $173 million, more than six times the revenue generated in the same quarter last year.

Robinhood’s earnings per share reached $0.51, falling short of the consensus estimate of $0.55.

Blockchain expansion continues despite trading slowdown

Robinhood continued to build its digital asset infrastructure even as activity in its crypto trading business declined.

The company said its blockchain network, Robinhood Chain, recorded more than $80 billion in decentralized exchange trading volume and generated over $50 million in network fees during its first quarter operating on mainnet.

The reported fees relate to blockchain activity and are separate from the crypto transaction revenue included in Robinhood’s quarterly results. The company has not specified how much of the network fees it recognized as revenue.

Robinhood shares fell approximately 5% in after-hours trading after the earnings report was released.