Robinhood, the crypto-friendly trading platform, has reported an impressive 75% month-on-month surge in digital asset trading volume for November. According to a Form 8-K filing submitted to the United States Securities and Exchange Commission (SEC) on December 4, Robinhood disclosed that “November Crypto Notional Trading Volumes were roughly 75% above October 2023 levels.”
This significant uptick in crypto trading volumes comes as a positive reversal for Robinhood, which faced a 55% decrease in cryptocurrency notional volumes over the year, as revealed in its Q3 results filing. The Q3 revenue fell below analyst estimates at $467 million, with transaction-based revenues declining by 11% year-on-year to $185 million, largely attributed to the decrease in crypto volumes during 2022.
The recent surge in crypto trading volumes may indicate a more lucrative fourth quarter for Robinhood, aligning with the broader rally in the crypto market, which has witnessed a 40% surge in total capitalization to $1.6 trillion over the past two months.
Robinhood’s co-founder and CEO, Vlad Tenev, expressed optimism during a November earnings call, suggesting that the platform could eventually achieve “nine figures” in annual revenue. Tenev reiterated this sentiment to Yahoo Finance on December 4, noting the renewed interest from retail investors in the crypto space.
“Retail investors are starting to show interest in crypto again. You’re starting to see retail investors wake up to certain segments of the rally, and in crypto activity, you’re seeing a groundswell.”
Tenev also acknowledged the correlation between media coverage, increasing intensity, and the price of Bitcoin approaching all-time highs, suggesting that these factors play a role in driving interest and participation in the crypto market.
Despite a downward trend since mid-July, Robinhood stock prices are up 18% since the beginning of 2023. At the time of writing, the company’s stock was priced at $9.95 in after-hours trading, reflecting a 2.5% daily gain.
Looking ahead, Robinhood has plans to expand its offerings. In addition to launching equities in the United Kingdom markets, the platform aims to introduce futures trading in 2024, pending regulatory approval. Back in August, it was reported that Robinhood had accumulated 118,000 BTC worth around $3 billion, highlighting the platform’s substantial holdings in Bitcoin.