Falling crypto prices appear to have played a role in the 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 was also down 19% from levels a year ago, when crypto was booming thanks to Donald Trump’s election victory.
Bitstamp, the crypto exchange that Robinhood agreed to acquire earlier this year, also saw volumes drop 11%.
As for stock trading volumes, they also struggled, falling 37% month-over-month in November to $201.5 billion. However, they were 37% higher on an annual basis.
Total assets on the Robinhood platform declined 5% in November to $325 billion.
The November slowdown raised fears of a slowdown in the boom in retail activity seen in recent months. For a company heavily dependent 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.
