Robinhood’s Crypto Volume Nosedives 29% in February—A Bearish Indicator for Coinbase?

Robinhood’s Crypto Trading Volume Falls 29% in February, Hinting at Broader Retail Slowdown

Robinhood (HOOD) saw its cryptocurrency trading volume decline by 29% in February, a steep drop that could signal weakening retail engagement across the industry and pose challenges for platforms like Coinbase (COIN).

The company reported $14.4 billion in crypto trades for the month, a decline that outpaced the modest 1% drops in equities and options trading. Still, the figure remains more than double last year’s levels, Robinhood noted in a press release.

The slowdown coincided with a broader downturn in digital assets, as Bitcoin (BTC) fell 15% and the CoinDesk 20 Index (CD20) slid 23% in February. Spot trading volume across centralized exchanges also dropped by 19% to $2.3 trillion, per CoinDesk data.

Retail enthusiasm for speculative assets also cooled, with memecoin token launches on Pump.fun plummeting from 62,000 per day to 24,000, according to 10x Research.

The decline in trading activity raises concerns for Coinbase, which shares a similar retail-heavy customer base. While Robinhood’s stock has fallen 4% year-to-date, Coinbase has dropped 15%, in line with the broader crypto market correction.

However, Coinbase has been expanding beyond retail trading, bolstering its institutional services and blockchain infrastructure business. Its recent launch of 24/7 bitcoin and ether futures trading could help cushion the impact of declining retail interest.

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