Robinhood Markets Inc., the popular mobile-focused brokerage firm, has recently released a report stating that crypto trading has experienced a significant decline of 68% compared to the previous year.

In May 2023, the total crypto trading volume on Robinhood amounted to approximately $2.1 billion, down from $6.6 billion in the same period last year.

Key Points:

  1. Sharp Decline in Crypto Trading: According to Robinhood’s monthly operating data report, crypto trading on the platform dropped by 68% compared to the previous year. In May 2023, the trading volume was approximately $2.1 billion, down from $6.6 billion in May 2022. Additionally, month-to-month comparison showed a significant decrease of 43% between May and April 2023.
  2. Delisting of Cryptocurrencies: Robinhood’s decision to delist cryptocurrencies Cardano, Polygon, and Solana followed the SEC’s announcement that these assets were considered securities. The SEC filed charges against two prominent crypto exchanges, Binance and Coinbase, leading Robinhood to take action and announce the removal of these cryptocurrencies from its platform. However, investors still have the option to buy, sell, and hold ADA, MATIC, and SOL until June 27.
  3. Impact on Crypto Values: The delisting of Cardano, Polygon, and Solana caused a decline in their respective values. Solana’s value dropped from around $22.23 to approximately $15, as reported by CoinMarketCap. Similarly, both Polygon and Cardano experienced price decreases.
  4. SEC’s Emphasis on Registration: SEC Chair Gary Gensler has repeatedly emphasized the need for crypto firms to register with the agency. Gensler has had constructive discussions with numerous crypto firms, emphasizing the importance of bringing their business models into compliance. This push for registration aligns with the SEC’s recent charges against Binance and Coinbase.
  5. Coinbase’s Dismissal by the SEC: Coinbase, the largest US-based crypto exchange, claims that it was eventually dismissed by the SEC after undergoing a lengthy registration process. The company faced challenges in figuring out how to register and comply with regulatory requirements.