The drop in cryptocurrency prices appears to have played a role in Robinhood’s (HOOD) disappointing overall trading volume results.
The brokerage app reported cryptocurrency volume of $28.6 billion in November, down 12% from $32.5 billion in October. That amount was also down 19% from levels a year ago, when cryptocurrencies were surging thanks to Donald Trump’s election victory.
Bitstamp, the crypto exchange that Robinhood agreed to acquire earlier this year, also saw an 11% drop in volumes.
As for stock trading volumes, they also struggled, falling 37% month-on-month in November to $201.5 billion. However, they were up 37% year over year.
Robinhood’s total platform assets decreased 5% in November to $325 billion.
The November slowdown raised concerns that the burst in retail business activity seen in recent months may be cooling. For a company that relies heavily on transaction-based revenue, falling stock, options and cryptocurrency volumes can impact earnings potential.
Shares fell 8% on Thursday, but remain 216% higher so far this year.
