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Robinhood's Crypto Trading Volume Plummets by 68% in May, Reaching $2.1 Billion
On Monday, Robinhood, a well-known trading platform, revealed a significant decrease in cryptocurrency trading volume during May, despite the continued high volume of equities and options trading.
The company revealed a significant decline in cryptocurrency trading volume in May, with it dropping to $2.1 billion, marking a 43% decrease compared to the previous month. Moreover, on a yearly basis, the company reported a substantial 68% slowdown in crypto trading volume.
In May, the daily average trading revenue (DART), which measures the average number of trades per day generating commissions or fees, experienced a 22% decline. Furthermore, the year-over-year comparison for crypto trading revealed a substantial drop of 53% in DART.
Recently, Robinhood announced that it had removed three tokens from its platform during its routine evaluation process. As a result, only 15 cryptocurrencies are now available for trading on the platform. The delisted tokens, namely ADA from Cardano, MATIC from Polygon, and SOL from Solana, were classified as securities by the U.S. Securities and Exchange Commission (SEC) in recent legal actions taken against Coinbase (COIN) and Binance.
Robinhood Markets' chief compliance lawyer, Dan Gallagher, informed lawmakers that in 2021, the company made attempts to register as a specialized broker for digital assets. Unfortunately, the discussions did not yield the desired outcome.
In recent weeks, Coinbase and Binance have faced legal action, accused of violating U.S. securities laws. On the other hand, Robinhood disclosed in its 10-K filing in February that it has received an investigative subpoena from the SEC concerning its cryptocurrency operations, but it has not faced any lawsuits thus far.
