Robinhood Sees 29% Drop in Crypto Trading Activity in February, Raising Concerns for Coinbase.

Robinhood’s Crypto Trading Volume Slumps 29% in February, Potential Warning Sign for Coinbase

Retail-driven crypto trading took a hit in February, with Robinhood (HOOD) reporting a 29% decline in trading volume compared to January. The slowdown raises concerns that other retail-focused platforms, including Coinbase (COIN), may also see weaker activity.

Robinhood’s crypto trading volume fell to $14.4 billion, marking a sharper decline than its equities and options trading, which dipped just 1% each. However, the figure remains more than double what it was a year ago, the company stated in a press release.

The decline aligns with February’s broader market slump, which saw Bitcoin (BTC) shed roughly 15% of its value, while the CoinDesk 20 Index (CD20) fell 23%. Meanwhile, spot trading volume across centralized crypto exchanges dropped 19% to $2.3 trillion, per CoinDesk data.

Interest in speculative assets also waned, with token launches on the popular memecoin platform Pump.fun plunging to 24,000 daily from a high of 62,000, according to 10x Research.

This cooling of retail enthusiasm could spell trouble for exchanges like Coinbase, which heavily relies on individual traders. Robinhood’s stock has dipped 4% year-to-date, while Coinbase has fallen 15%, in line with the broader crypto downturn.

That said, Coinbase’s recent push into institutional trading and blockchain infrastructure—such as its 24/7 bitcoin and ether futures—could provide a cushion against declining retail participation.