Robinhood Markets (HOOD) has reported a 29% drop in crypto trading volumes during February as retail investors’ enthusiasm for digital coins and tokens fades.
Robinhood added that the decrease in crypto trading far outpaced declines seen in equities and options trading, which dipped only 1% during February.
The drop off in crypto trading volumes comes amid a slump in the broader market, with Bitcoin’s (BTC) price falling nearly 25% since U.S. President Donald Trump’s inauguration on Jan. 20.
The steep decline in crypto trading volumes at Robinhood is not good news for other crypto exchanges such as Coinbase Global (COIN) that depend on active trading among investors.
Crypto trading on Robinhood’s platform in February totaled $14.40 billion U.S., down 29% from a year earlier.
Robinhood says that trading volumes have continued to decline as the crypto market slides lower, with Bitcoin’s price dropping 15% in the last month to currently trade at $83,200 U.S.
Most crypto exchanges, including Robinhood and Coinbase, cater to individual retail investors and a lack of interest on their part could hurt financial results at the companies.
The stock of Robinhood is down 8% this year and trading at $36.36 U.S. per share. Coinbase Global’s stock has declined 25% on the year to trade at $191.69 U.S. a share.
