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Wall Street analysts are forecasting that Robinhood Markets, Inc. (Hood.O) will achieve unprecedented revenue levels in the second quarter of the fiscal year. This anticipated growth is largely attributed to the resurgence of retail investors who are flocking to the platform to trade popular “meme stocks” and cryptocurrencies.

The revival of influencer Keith Gill, who is widely recognized online as “Roaring Kitty,” has reignited interest in retail favorites such as GameStop (GME.N). This renewed enthusiasm has successfully drawn individual investors back to Robinhood’s commission-free trading app.

Robinhood has experienced a significant increase in trading volumes, with equity trades soaring by 82% in April and 76% in May compared to the same period last year. This surge reflects the heightened engagement of retail investors who are capitalizing on market trends.

Michael Ashley Schulman, Partner and Chief Investment Officer at Running Point Capital Advisors, commented, “I anticipate that the company’s revenue growth will be closely tied to and significantly influenced by the performance of stock and cryptocurrency markets.”

Robinhood’s role in the retail trading phenomenon of 2021 is well-documented. During the pandemic lockdowns, the platform emerged as a primary venue for investors eager to invest in meme stocks, reflecting its rapid growth and increasing popularity.

As Robinhood approaches its 12th year, the company is transitioning from its initial trading model to becoming a comprehensive financial services provider. Citigroup analysts have noted positive developments in Robinhood’s fundamental business metrics, including growth in deposits, margin balances, and options and equities trading.

In addition to its successes in traditional equities trading, Robinhood is also making significant strides in the cryptocurrency market. The recent approval of the first spot Bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission has provided a boost to crypto market sentiment, benefiting trading platforms like Robinhood.

The company’s crypto trading volumes have demonstrated impressive growth, with a 238% increase in May and a 173% rise in April compared to the previous year. This uptick highlights Robinhood’s potential to leverage cryptocurrency as a major growth avenue.

Despite the current enthusiasm surrounding Robinhood’s trading activity, analysts have expressed caution. They suggest that the recent spikes in trading, driven by Keith Gill’s social media comeback and the crypto ETF excitement, might not sustain long-term trends. Schulman warned that these factors could be temporary and may not be reliable indicators for future financial performance.

As Robinhood continues to navigate a rapidly evolving financial landscape, it remains to be seen whether the current trading patterns will establish lasting trends or if they will prove to be transient anomalies.