Robinhood Reports 29% Drop in Crypto Trading Volumes for February
Robinhood’s (HOOD) crypto trading volumes fell 29% in February, declining to $14.4 billion, significantly impacted by retail trader activity. This decline contrasts with a 1% decrease in equities and options trading, yet remains more than double the volume from a year earlier.
- February saw Bitcoin's value drop by 15% and the CoinDesk 20 Index decrease by 23%
- Centralized exchanges experienced a 19% reduction in spot trading, totaling $2.3 trillion
- Memecoin activity decreased, with Pump.fun reporting daily token launches down from 62,000 to 24,000
The downturn indicates reduced retail interest in cryptocurrency, potentially affecting other platforms like Coinbase (COIN), which targets a similar user base. Robinhood shares are down 4% this year, while Coinbase has dropped 15% amid the overall crypto market decline.
Coinbase is expanding its institutional services and recently announced 24/7 bitcoin and ether futures trading, which may mitigate the impact of declining retail engagement.