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Robinhood sees a 75% increase in crypto trading volume in November

Robinhood sees a 75% increase in crypto trading volume in November

Robinhood has seen a significant increase in crypto trading volume, with a 75% month-on-month increase in November.

This surge, which was reported in a Form 8-K filing with the US Securities and Exchange Commission on December 4th, represents a significant turnaround for Robinhood after it reported a 55% year-over-year decline in crypto notional volumes in its Q3 results.

According to the filing, Robinhood’s crypto notional trading volumes for November were 75% higher than in October.

This surge in crypto activity is notable, particularly when compared to relatively unchanged trading volumes for stocks and options contracts during the same time period.

The impressive increase in cryptocurrency trading comes as Robinhood strives for a more profitable fourth quarter. With $467 million in revenue in the third quarter, the platform fell short of analysts’ expectations.

The drop in crypto volumes in 2022 contributed to an 11% year-on-year drop in transaction-based revenues of $185 million.

In a November earnings call, Robinhood co-founder and CEO Vlad Tenev expressed confidence in the platform’s performance, predicting “nine figures” in annual revenue.

Tenev observed a renewed interest in crypto among retail investors, which aided the platform’s revival.

Since the beginning of 2023, the stock price of Robinhood has increased by 18%, indicating positive market sentiment.

However, the stock has dropped since peaking at just over $13 in 2023, with a recent trading value of $9.55, following a 2.47% rise.

Robinhood’s entry into commission-free stock trading in the United Kingdom is a bold strategic move. Despite the obstacles, Tenev hopes to replicate the success of Robinhood’s pre-pandemic business in the United States by revitalizing the UK market through cost reductions.

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Judith Faith has been writing about cryptocurrencies and blockchain technology for over five years. She is well versed in the industry and has an extensive network of industry contacts. She is also a frequent contributor to various cryptocurrency publications. With her vast knowledge and experience, she is able to provide insightful and valuable content to her readers. Judith is also an active investor in the cryptocurrency space and has a vested interest in the success of the industry.