Popular trading platform Robinhood (HOOD) has seen a steep decline in crypto trading volume in May, the company reported on Monday, even while volume for equities and options remained high.
The company reported that trading volume for cryptocurrencies dropped to $2.1 billion in May, down 43% from the prior month. On a yearly basis, crypto trading volume slowed 68%, it said.
Daily average trading revenue (DART), a metric that tracks the average trade per day that generated commissions or fees, was down 22% in May and 53% year-over-year for crypto trading.
Just last week, Robinhood delisted three tokens as part of its regular review, leaving only 15 cryptocurrencies available for trading on the platform, the company said. The delisted tokens, Cardano's ADA, Polygon's MATIC, and Solana's SOL, were named as securities by the U.S. Securities and Exchange Commission (SEC) in recent lawsuits against Coinbase (COIN) and Binance.
Robinhood Markets’ chief compliance lawyer Dan Gallagher told lawmakers that the company was trying to register as a special-purpose broker for digital assets in 2021, but the conversations weren’t successful.
Both Coinbase and Binance were hit with lawsuits earlier this month on accusations of violating U.S. securities laws. Robinhood has so far only received an investigative subpoena from the SEC regarding its crypto operations, it revealed in its 10-K filing in February.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.