Robinhood, the popular online brokerage platform, has released its monthly operating data for May 2023, revealing some interesting trends in user activity and crypto trading volumes.
According to the press release, the trading volume of cryptocurrencies on Robinhood experienced a significant decline. In May, the total trading volume for cryptocurrencies fell to $2.1 billion, marking a substantial decrease of 43% compared to the previous month and a staggering 68% decline compared to the same period last year.
Furthermore, the number of monthly active users on the platform also experienced a decline. In May, Robinhood had 10.6 million monthly active users, indicating an 8% decrease compared to April 2023 and a substantial 28% drop compared to May 2022.
These numbers come at a time when Robinhood recently delisted several digital currencies, including ADA, MATIC, and SOL. The decision to delist these assets was reportedly due to an ongoing lawsuit filed by the U.S. Securities and Exchange Commission (SEC).
Despite the decline in cryptocurrency trading, Robinhood saw an increase in other areas. Net cumulative funded accounts (NCFA) at the end of May reached 23.1 million, a slight increase of approximately 20,000 accounts compared to April 2023.
Assets Under Custody See Modest Growth Despite Crypto Slump
Additionally, assets under custody (AUC) rose to $81.8 billion, showing a 6% growth from April 2023. Net deposits for May amounted to $1.6 billion, translating to an annualized growth rate of 25% relative to the AUC in April 2023.
Trading volumes for equities and options, on the other hand, experienced positive growth. Equity notional trading volumes reached $49.4 billion, reflecting a significant increase of 27% compared to April 2023.
Options contracts traded also rose to 97.5 million, indicating a 29% increase. However, despite the overall positive trend in equities and options, the decline in cryptocurrency trading volumes had a notable impact on the platform’s performance.
The decline in cryptocurrency trading volume and user engagement on Robinhood raises questions about the future of the crypto market and the impact of regulatory actions. It remains to be seen how these numbers will continue to evolve in the coming months.
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