Robinhood warned of a potential slowdown in trading revenue and new clients due to a deceleration in retail investing, particularly in cryptocurrencies.

This makes sense given that earlier this year; the California-based firm had reported 34% of its revenue just from Dogecoin (DOGE), one of the seven cryptocurrencies available on the platform.

At the time as well, it had said that if demand for Dogecoin declines or isn’t replaced by new demand for other cryptos available on its platform, that could “adversely affect” its operation and financial condition.

“We expect our revenue for the three months ending September 30, 2021, to be lower, as compared to the three months ended June 30, 2021, as a result of decreased levels of trading activity relative to the record highs in trading activity, particularly in cryptocurrencies, during the three months ended June 30, 2021, and expected seasonality,” Robinhood said in an amended prospectus released Monday.

The stock trading app estimates Q2 revenue between $546 million and $574 million, a 129% surge from $244 million in 2Q20. Crypto is 17% of its revenue, while options trading accounts for about 38%.

Robinhood also said it anticipates the rate of growth of new clients to be lower in Q3 compared to Q2 “due to the exceptionally strong interest in trading, particularly in cryptocurrencies, we experienced in the three months ended June 30, 2021, and seasonality in overall trading activities.”

In Q2, the app is expected to have 22.5 million funded accounts, those tied to a bank account, up from 18 million in Q1.

The free-trading pioneer is seeking a market valuation of as much as $35 billion in its upcoming initial public offering (IPO), up from an $11.7 billion valuation in September. It will attempt to sell its share at a range of $38-$42 per share (55 million shares in total).

Robinhood plans to trade on the Nasdaq under the symbol HOOD. Its pre-IPO contracts are already trading on the crypto derivatives platform FTX. Currently, it is trading just under $44, down from above $120 in late March.

Goldman Sachs, JPMorgan, and Citigroup are the lead underwriters on the deal.

Robinhood’s competitors include startups like Webull and Sofi and giants like Charles Schwab, which has a market cap of $130 billion, $26 billion Interactive Brokers, and Fidelity.

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