Robinhood’s cryptocurrency trading volumes plunged to $14.4 billion in February, marking a substantial 29% decline from January 2025 figures, as retail investors retreated amid heightened market volatility.
Despite this month-over-month decrease, the platform’s crypto trading activity demonstrated remarkable year-on-year growth, more than doubling with a 122% increase compared to February 2024, indicating sustained long-term momentum despite short-term fluctuations.
While crypto volumes fell month-over-month, the 122% year-on-year surge signals enduring momentum beneath short-term market turbulence.
The cryptocurrency segment represents a critical revenue component for Robinhood, contributing nearly 40% of the company’s quarterly revenue, which underscores the significance of these trading volume metrics.
This recent downturn follows an exceptional performance in Q4 2024, when crypto trading volumes reached an impressive $70 billion, reflecting a 400% year-over-year increase that was largely driven by Bitcoin’s unprecedented rise to $100,000 amid post-election optimism.
Equity trading on the platform showed greater resilience, with volumes decreasing only marginally by 1% to $142.9 billion in February, suggesting that investor sentiment remained relatively stable in traditional markets compared to crypto assets. The continued engagement with memecoin trading has contributed to short-term user activity despite its characteristically volatile nature.
Assets Under Custody (AUC) experienced an 8% month-over-month decline to $187 billion, while the platform’s funded customer base grew to 25.6 million, representing an addition of approximately 150,000 users since January 2025.
In positive developments, Robinhood received regulatory relief when the SEC closed its investigation into the company’s crypto activities without taking enforcement action, though this was partially offset by a $30 million settlement with Finra over compliance issues.
The company’s margin balances increased to $8.7 billion, marking a 5% rise from January 2025 and a substantial 129% year-over-year growth.
Looking forward, Robinhood is strategically positioning itself through tokenization initiatives and institutional market expansion, including integration with Bitstamp. Investors using the platform can benefit from implementing cold storage wallets for enhanced security of their long-term cryptocurrency holdings.
February’s net deposits reached $4.8 billion with a 28% annualized growth rate, indicating that despite the temporary pullback in crypto trading, the platform continues to attract capital and expand its user base in an evolving regulatory landscape under the new administration. Analysis from Bernstein rating firm suggests strong confidence in Robinhood’s growth potential with a price target of $105 and an Outperform rating.
