Robinhood’s Crypto Trading Volume Drops 29% in February, Signaling Potential Impact on Coinbase
Robinhood (HOOD) saw its cryptocurrency trading volume plummet by 29% in February compared to the previous month, reflecting a decline in retail trading activity that could have broader implications for other exchanges, including Coinbase (COIN).
The platform processed $14.4 billion in crypto trades during the month, marking a sharper drop than its equities and options trading segments, which each declined by just 1%. Despite the month-over-month dip, crypto trading volume remained more than double the level recorded in February of the previous year, Robinhood noted in a press release.
The decline in trading activity coincided with a broader market downturn. Bitcoin (BTC) lost around 15% of its value in February, while the CoinDesk 20 Index (CD20) fell by approximately 23%. Across centralized exchanges, total spot trading volume slid 19% to $2.3 trillion, according to CoinDesk data.
Additionally, interest in memecoins appeared to wane, with launch activity on leading token platform Pump.fun dropping from 62,000 daily token launches to just 24,000, according to 10x Research.
The slowdown in crypto trading suggests a decline in retail investor engagement, potentially affecting other platforms like Coinbase, which caters to a similar customer base.
Robinhood shares have fallen 4% year-to-date, while Coinbase has seen a steeper 15% decline, mirroring the broader downturn in the crypto market. However, Coinbase has been actively expanding its institutional services and blockchain infrastructure offerings, including the recent launch of 24/7 bitcoin and ether futures trading—moves that could help mitigate the impact of reduced retail trading activity.
