The decline in crypto prices appears to have contributed to Robinhood’s (HOOD) disappointing overall trading volume results.
The securities app reported that virtual currency trading volume in November was $28.6 billion, down 12% from $32.5 billion in October. This amount was also down 19% from the previous year’s level, when cryptocurrencies soared following Donald Trump’s election victory.
Cryptocurrency exchange Bitstamp, which Robinhood agreed to acquire earlier this year, also saw an 11% drop in trading volume.
Stock trading volume suffered similarly, falling 37% from the previous month to $201.5 billion in November. However, it was up 37% year over year.
Robinhood’s total platform assets fell 5% in November to $325 billion.
The economic slowdown in November raised concerns that the surge in retail trading activity seen in recent months was slowing. For companies that rely heavily on transaction-based revenue, weak trading volumes in stocks, options and cryptocurrencies could weigh on revenue potential.
The stock fell 8% on Thursday, but is still up 216% on a year-to-date basis.