Robinhood's Crypto Trade Slump: 43% Monthly Decline in Fee-Generating Trades
CryptoNewsTerminal Staff16 May, 2024
Robinhood's Crypto Trade Slump: 43% Monthly Decline in Fee-Generating Trades
Robinhood's average daily crypto trades that generate fees plunged by 43% in April compared to March, highlighting a waning interest among retail investors in cryptocurrencies. According to Bloomberg, this decline was more pronounced on Robinhood than other major crypto exchanges. The drop in Robinhood's crypto trading volumes comes amid a broader downturn in the crypto market. Spot trading volumes on major centralized exchanges such as Coinbase, Binance, and Kraken fell by 32.6% in April. This marked the first monthly decline in seven months, as Bitcoin prices corrected from their March highs and investor demand waned. The decline in Robinhood's crypto trading activity is also reflected in its earnings report. The company reported a 57% drop in April crypto trading revenue, amounting to $101 million. This signals a significant loss in a key revenue stream for Robinhood. The waning interest in cryptocurrencies on Robinhood suggests that retail investors may be taking a more cautious approach to their investments in this volatile asset class.
