Robinhood’s Crypto Trading Volume Plunges 29% in February, Raising Concerns for Coinbase
Robinhood (HOOD) reported a sharp 29% drop in crypto trading volume for February, signaling a potential cooling of retail investor interest that could also impact Coinbase (COIN) and other trading platforms.
The company processed $14.4 billion in crypto trades last month, a steeper decline than the 1% drops seen in equities and options trading. Despite the monthly slowdown, the figure was still more than double what Robinhood recorded a year ago, according to its press release.
The slump coincided with a broader market downturn, with Bitcoin (BTC) shedding 15% of its value and the CoinDesk 20 Index (CD20) falling 23%. Spot trading across centralized exchanges also took a hit, dropping 19% to $2.3 trillion in February, according to CoinDesk data.
Retail trading in speculative assets also waned, as memecoin activity on Pump.fun saw daily token launches plummet from 62,000 to just 24,000, per 10x Research.
The drop in retail participation could spell trouble for Coinbase, which relies heavily on individual traders. While Robinhood’s stock has slipped 4% in 2025, Coinbase has seen a steeper 15% decline, mirroring the broader crypto market’s struggles.
However, Coinbase has been working to diversify its revenue streams, strengthening its institutional services and blockchain infrastructure. The firm recently introduced 24/7 trading for bitcoin and ether futures, a move that could help mitigate the impact of declining retail activity.
