„Crypto boom“ – Robinhood records significantly more crypto users than in the previous year
In the first two months of the new year alone, the trading platform recorded 6 million new crypto users.
Robinhood, the recently controversial trading app that specialises in small retail investors, has revealed that the number of crypto investors on its platform has increased 15-fold year-on-year.
As the company reveals in a new report called „Crypto Goes Mainstream“, more than 3 million new users bought Bitcoin Pro cryptocurrencies through Robinhood in January. In February, there have been 2.9 million new users so far. So in the first two months of the new year alone, the number of „crypto newcomers“ has already grown by almost 6 million users.
A considerable increase, because in the strongest month of last year (July 2020), only 401,000 new crypto users were gained, although trading activity on the crypto markets was particularly high at that time due to the Bitcoin halving.
On average, Robinhood added around 200,000 new crypto users per month in 2020, making the new figures all the more impressive. Transaction sizes also reflect this picture, with an average of $500 worth of transactions currently being made, a 100% increase on the first three quarters of the previous year. The report concludes:
„The numbers are clear: 2021 has started with a crypto boom.“
In the context of the GameStop affair
It seems the platform wants to jump on this boom, as Robinhood already revealed in a tweet last week that deposits and withdrawals for cryptocurrencies will soon be available.
The company, which already indicates in its name (Robinhood) that it is committed to the „little man“, has a lot to make up for with the latter. In the context of the GameStop affair, the platform had temporarily suspended trading in GME shares. Trading in the cryptocurrency Dogecoin (DOGE) was also suspended after it too was catapulted to new heights by small investors. Observers suspect that the company thus wanted to protect its big backers at the expense of the little people.
This led to a political aftermath in which the American parliament immediately questioned Robinhood’s entire business model. CEO Vlad Tenev replied, however, that the trading halt had to be carried out due to legal requirements by the US Securities and Exchange Commission (SEC).