Robinhood Markets Inc. (NASDAQ:HOOD) reported a significant decline in crypto trading volumes for April, reflecting a broader cooling in retail investor interest in digital assets.
What's Next: The trading platform revealed in an operating report on Wednesday that its crypto notional trading volumes dropped to $10.1 billion in April, a steep 57% decrease from March's $23.6 billion, Bloomberg reported.
Despite this sharp fall, the figures were still up 173% compared to the same period last year.
The company's daily average revenue trades (DARTs), which indicate the number of trades per day that generated commissions, also saw a notable decrease.
DARTs slipped 43% to approximately 400,000 trades, although this was still double the amount recorded in April 2023. Robinhood has yet to comment on these recent figures.
The decline in trading volumes at Robinhood was more pronounced than that observed on other cryptocurrency exchanges.
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Why It Matters: According to data from researcher CCData, spot trading volumes on centralized exchanges such as Coinbase (NASDAQ:COIN), Binance, and Kraken fell 32.6% to $2 trillion in April.
This marked the first decline in seven months, attributed to a decrease in investor demand following Bitcoin's (CRYPTO: BTC) retreat from its March record high.
The recent dip in crypto trading volumes highlights the volatility and changing dynamics within the digital assets market. As retail investor enthusiasm wanes, platforms like Robinhood are experiencing more significant impacts compared to their larger counterparts.
What's Next: This shift in trading activity and its implications for the digital assets market will be a key topic at Benzinga's Future of Digital Assets event on Nov. 19.
The event will explore the evolving landscape of digital assets, offering insights into investor behavior, regulatory challenges, and the future trajectory of cryptocurrencies.
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