- The total value of cryptocurrency traded on the platform in January was $3.7 billion.
- After the news, the company’s stock price increased by around 6%.
More than $3.7 billion was traded on Robinhood’s platform for cryptocurrencies in the last month, marking a 95% increase compared to December 2022. The company saw a decline in cryptocurrency sales after a strong start to the year due to the 2022 bear market.
Compared to their values at the end of 2022, most cryptocurrencies and digital assets had remarkable price increases during the first month of 2023.
Robinhood seems to have profited from the recent uptick in market conditions. The total value of cryptocurrency traded on the platform in January was $3.7 billion, a 95% increase over the $1.9 billion recorded in December. Nonetheless, this is a long cry from January 2022’s record-breaking $9.1 billion.
After the news, the company’s stock price increased by around 6% and plummeted 2% later to roughly $10.34 now. Robinhood’s cryptocurrency earnings and general trading activity both dropped dramatically during the turbulent year of 2022.
Tough Year 2022
In the first quarter of 2022, it saw a 43% decline in net revenue, while trading in cryptocurrencies fell by over 40%. The third quarter saw a dip in crypto-related revenue of 12%, while the fourth quarter saw a decline of 24%.
In addition, in August Robinhood was hit with a $30 million penalty by the New York State Department of Financial Services (NYDFS) for alleged violations of AML and cybersecurity regulations.
The platform followed many other crypto-related businesses in laying off employees as a result of the recent market fall and negative macroeconomic circumstances. In April, it laid off 9% of its workforce, then a few months later, it laid off 23%.
