Robinhood, a crypto and stocks trading platform, has not escaped the biting crypto winter that has been ravaging the space. In a new announcement, the company has revealed a significant decline in its trading volumes as regulatory pressure mounts on crypto firms.
Robinhood Crypto Trading Volume Falls 68%
In its operating data report for May released on Monday, Robinhood revealed that its trading volume had suffered tremendous setbacks on both a monthly and yearly basis. The trading app said that its crypto trading volume declined in the month of May by 43% to only $2.1 billion recorded for the month.
On a year-over-year basis, Robinhood’s numbers were even worse. Its May 2023 $2.1 billion figures signified a 68% decline from its May 2022 figures of $6.6 billion, the largest decline recorded by the company for the month of May.
Furthermore, there was also a decline in the number of active users on the platform. Robinhood revealed that its active user numbers fell from 11.5 million the previous month to 10.6 million, a 7.8% decrease.
Interestingly, the platform’s options contracts numbers were positive after rising 36% for the month. This increase shows a shift in investor sentiment and focuses as there seems to be a move away from crypto toward other investment avenues.
HOOD price holding steady above $9 | Source: Robinhood Markets, Inc On TradingView.com
Fighting Through Regulatory Pressures
The figures for Robinhood come at a time when crypto firms are coming under fire from the United States Securities and Exchange Commission, among other agencies. Last week, the SEC sued the Binance and Coinbase exchanges and in the course of these lawsuits, proclaimed a number of cryptocurrencies to be securities.
In response, Robinhood delisted three tokens that were named to be securities by the SEC, including Polygon (MATIC), Solana (SOL), and Cardano (ADA). For the trading platform, the move was prompted by regulatory action being taken against digital assets which could very well include these three soon enough.
The notice sent to users advised that they withdrew their ADA, SOL, and MATIC assets by June 26, 2023, as they would no longer be supported by the platform. Additionally, all trading for these assets would be halted on June 27, 2023.
Robinhood’s stock has fared quite well over the last month though. It is currently trading at $9.42 at the time of writing, only 5.4% below its May peak of $9.96.