Falling crypto prices appear to have played a role in disappointing overall trading volume results for Robinhood (HOOD).
The brokerage app reported crypto volume of $28.6 billion in November, down 12% from October’s $32.5 billion. This amount also fell by 19% compared to the level of a year ago, as the cryptocurrency rose sharply thanks to Donald Trump’s election victory.
Bitstamp, the crypto exchange Robinhood agreed to acquire earlier this year, also saw an 11% drop.
As for stock trading volumes, they also struggled, falling 37% month-over-month in November to $201.5 billion. However, they were higher at 37% year-on-year.
Robinhood’s total platform assets fell 5% in November to $325 billion.
The slowdown in November raised concerns that the burst of retail activity seen in recent months may be waning. For a company that relies heavily on transaction-based revenue, falling volumes in stocks, options and crypto can weigh on earnings potential.
Shares are down 8% on Thursday but remain up 216% year-to-date.
