Robinhood (HOOD) crypto trading volumes took a steep hit in February, tumbling 29%

The month-over-month drop to $14.4 billion outpaced declines in equities and options trading, which each fell 1%. Even so, the figure was more than double the year-earlier level

Robinhood's (HOOD) cryptocurrency trading volumes declined sharply in February, decreasing by 29% to $14.4 billion, according to a report by the company.

The month-over-month drop in crypto trading volume outpaced declines in equities and options trading, which each fell by 1%. However, the figure was more than double the year-earlier level.

The steep decrease in crypto trading can be attributed to the cryptocurrency market downturn, which saw Bitcoin (BTC) lose about 15% of its value last month and the broader CoinDesk 20 Index (CD20) fall by approximately 23%.

Across centralized cryptocurrency exchanges, spot trading dropped by 19% to $2.3 trillion in February compared with January, according to CoinDesk data.

Memecoin activity also slowed down, with leading token launchpad Pump.fun seeing daily token launches plunge to 24,000 from 62,000, as reported by 10x Research.

The slowdown in cryptocurrency trading volumes suggests lower retail interest in the space and could have implications for other exchanges such as Coinbase (COIN), which caters to a similar audience.

Shares of Robinhood, a retail-focused trading platform that also offers equities, options, and a cryptocurrency wallet, have decreased by 4% this year. In contrast, Coinbase shares have fallen by 15%, aligning with the broader crypto market retreat.

Coinbase has been expanding its institutional services and blockchain infrastructure business, which could help mitigate some of the impact from weaker retail trading. The company recently announced the introduction of 24/7 bitcoin and ether futures trading and is applying for a banking license in the U.S.

Moreover, Coinbase is venturing into the decentralized finance (DeFi) domain with the launch of a new defi lending product in partnership with Aave (AAVE).

In the fourth quarter of 2023, Robinhood's net revenue fell by 43% year-over-year to $393.7 million, while its net loss widened to $1.3 billion from $678 million in the previous year.

The company's operating expenses surged by 100% to $1.7 billion, driven by a $900 million charge related to the Paytrust integration and a $700 million provision for pending litigation.

Despite the crypto trading volume decreasing, it is still significant compared to equities and options trading. In February, equities trading volume dropped slightly to $157 billion, while options trading volume fell to $78 billion.

At the beginning of the year, both traders and analysts had high expectations for 2024, anticipating a strong rebound in the market and increased interest in cryptocurrencies. However, the market has faced several challenges, including the FTX bankruptcy and the U.S. government's crackdown on the industry.

As the year progresses, it remains to be seen whether the crypto trading volume will pick up again, and if platforms like Coinbase and Robinhood will be able to maintain their revenue and earnings despite the volatility in the market.

output: Robinhood's (HOOD) crypto trading volumes took a steep hit in February, tumbling 29% from the previous month to $14.4 billion, according to the company.

The month-over-month drop in crypto trading outpaced declines in equities and options trading, which each fell by 1%. Even so, the figure was more than double the year-earlier level.

The figure shows how trading dropped off as the cryptocurrency market slid. Bitcoin (BTC) lost about 15% of its value last month and the broader CoinDesk 20 Index (CD20) fell by around 23%.

Across centralized cryptocurrency exchanges, spot trading dropped 19% to $2.3 trillion in February compared with January, CoinDesk data shows.

Memecoin activity also eased, with leading token launchpad Pump.fun seeing daily token launches plunge to 24,000 from 62,000, according to 10x Research.

The slowdown in cryptocurrency trading volumes suggests lower retail interest in the space and could have implications for other exchanges including Coinbase (COIN), which caters to a similar audience.

Shares of Robinhood, a retail-focused trading platform that also offers equities, options, and a cryptocurrency wallet, have dropped by 4% this year. In contrast, Coinbase shares have fallen by 15%, aligning with the broader crypto market retreat.

Coinbase has been expanding its institutional services and blockchain infrastructure business, which could help offset some of the impact from weaker retail trading. The company recently announced the introduction of 24/7 bitcoin and ether futures trading and is applying for a banking license in the U.S.

Moreover, Coinbase is venturing into the decentralized finance (DeFi) domain with the launch of a new defi