Plunging cryptocurrency prices appear to be one of the reasons for Robinhood’s (HOOD) disappointing overall volume results.
The brokerage app reported $28.6 billion in cryptocurrency trading volume in November, down 12% from $32.5 billion in October. The figure is also down 19% from levels a year ago, when the cryptocurrency surged due to Donald Trump’s election victory.
Trading volume at Bitstamp, the cryptocurrency exchange that Robinhood agreed to acquire earlier this year, also fell 11%.
As for equity trading volume, November trading volume also struggled, falling 37% month-on-month to $201.5 billion. However, they grew 37% year over year.
Robinhood’s total platform assets fell 5% to $325 billion in November.
The economic slowdown in November raised concerns that retail trading activity, which has exploded in recent months, may be cooling. For a company that relies heavily on transaction-based revenue, declining trading volumes in stocks, options and cryptocurrencies could impact earnings potential.
The company’s shares fell 8% on Thursday, but are still up 216% year to date.