Robinhood Crypto Trading Volume Recovers by 95% in January

Trading volume on the online trading app Robinhood is experiencing a rebound already according to the company’s released January performance metrics. Over $3.7 billion worth of cryptocurrency was traded on the Robinhood platform in January indicating about a 95% increase as compared to the value in December 2022. 

Generally, Q4 2022 was a troubling time for the firm’s investors as revenue from options, cryptocurrencies and equities dipped during that time.

Apart from its crypto revenue, Robinhood’s Assets Under Custody experienced a stunning 20% growth to $74.7 billion. At the same time, notional trading in all areas of the firm’s operations was in an uptrend. Equity transactions gained 19% thereby reaching almost $46 billion. Also, option contract transactions were not left out of the rally as they saw a 10% increase.

Remarkably, the first month of 2023 came with hope for traders as several digital currencies including Bitcoin (BTC) began to recover in terms of their market price. This development seems to have been beneficial to Robinhood considering the latest uptrend in its trading volume. In December, only $1.9 billion was recorded from cryptocurrency trades. 

Robinhood Experienced Downturn in Crypto Revenue

While the $3.9 billion from January 2023 is significant growth from the December 2022 figure, it is however a far cry from the January 2022 revenue.

By the first month of 2022, Robinhood quoted a record-breaking figure of $9.1 billion from cryptocurrency trading. This breakthrough was short-lived owing to stiff competition and the bear market which seeped through the whole industry.

Before the end of Q1 2022, a 39% year-over-year loss in crypto revenue had been reported. During that time, the company took the option of reducing its headcount by about 23% to ensure stability in its business. Again in Q3 2022, Robinhood saw another 12% decline in its crypto revenue although the American trading platform saw it as a time when “customers continued to navigate the volatile market environment.” 

The turbulent year ended with a 24% downtrend from the previous quarter with a value of $1.9 billion. Since news of its trading volume recovery became public, Robinhood’s stock price has grown by up to 6%.