The decline in cryptocurrency prices seems to have contributed to disappointing trading volume figures for Robinhood (HOOD).
The brokerage platform reported a crypto volume of $28.6 billion in November, a decrease of 12% from October’s $32.5 billion. This figure also marks a 19% drop compared to the previous year, when crypto was booming following Donald Trump’s election victory.
Bitstamp, the cryptocurrency exchange that Robinhood agreed to purchase earlier this year, also experienced an 11% decrease in trading volume.
Equity trading volumes were also affected, falling by 37% month-over-month in November to $201.5 billion, although they were up by 37% compared to the same month last year.
Robinhood’s total platform assets fell by 5% in November to $325 billion.
The slowdown in November has raised alarms that the surge in retail trading activity observed in recent months might be waning. For a company reliant on transaction-based revenue, declining volumes in equities, options, and crypto could impact earnings.
Shares fell by 8% on Thursday but have risen 216% year-to-date.
