Robinhood’s Crypto Trading Volume Drops 57% in April – Robinhood Markets (NASDAQ:HOOD)

May 16, 2024 1:52 pm | 2 minutes reading

Robinhood Markets Inc. (NASDAQ:HOOD) reported a significant decline in crypto trading volumes in April, reflecting a cooling on retail investor interest in digital assets.

What is the next: The trading platform revealed in an operational report on Wednesday that its notional crypto trading volumes fell to $10.1 billion in April, a sharp 57% drop from March’s $23.6 billion , Bloomberg reported.

Despite this sharp drop, the numbers were still up 173% compared to the same period last year.

The company’s daily average revenue trades (DARTs), which indicate the number of trades per day that generated commissions, also saw a notable decrease.

DARTs fell 43% to approximately 400,000 trades, although this is still double the amount recorded in April 2023. Robinhood has not yet commented on these recent numbers.

The decline in trading volumes on Robinhood was more pronounced than that seen on other cryptocurrency exchanges.

Read too: Spot Bitcoin ETFs Pocket Net Inflows of $303 Million on Wednesday: ‘The Stars Appear to be Aligning on This Breakout,’ Analytics Firm Writes

Why this matters: According to data from researcher CCData, spot trading volumes on centralized exchanges such as Coin base (NASDAQ:COIN), BinanceIt is Kraken fell 32.6% to $2 trillion in April.

This marked the first decline in seven months, attributed to a decline in investor demand after Bitcoin‘s (CRYPTO: Bitcoin) retreats from its all-time high in March.

The recent drop in crypto trading volumes highlights the volatility and changing dynamics of the digital asset market. As retail investor enthusiasm wanes, platforms like Robinhood are taking more significant hits compared to their larger counterparts.

What is the next: This shift in trading activity and its implications for the digital asset market will be a key topic at Benzinga’s Future of Digital Assets event on November 19.

The event will explore the evolving landscape of digital assets, offering insights into investor behavior, regulatory challenges and the future trajectory of cryptocurrencies.

Read next: Crypto traders are as socially valuable as British escorts, study finds

Image: Shutterstock

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