Robinhood reported surge in new users this year as most of them joined to get a piece of the crypto cake so let’s read more in our latest cryptocurrency news.
In a blog post published “Crypto Goes Mainstream” Robinhood revealed that it had seen six million new users on the app for trading crypto so far this year. The number of new monthly customers purchasing crypto in 2021 is 15 times the 2020 average:
“By comparison, this number peaked at 401,000 in a single month last year, with a monthly average of about 200,000 customers trading on Robinhood Crypto for the first time during 2020.”
Robinhood reported surge in users but the exchange became controversial when it had to stop trading in late January because of the overwhelming demand for assets like Bitcoin, Dogecoin, Ethereum, Bitcoin SV, Bitcoin Cash, Litecoin, and Ethereum Classic. There are no trading size limits that it added that the average transaction size is about $500. The charts show that the average trade was around half of that to $250 in 2020:
“First-time buyer? Long-term #HODLer? 🚀 This year, six million of you used Robinhood Crypto for the first time to buy and sell #crypto. We fully intend to provide the ability to deposit and withdraw cryptocurrencies.💥 Learn more: https://t.co/8VQhKtWB32 pic.twitter.com/rwsVdlNIg3
— Robinhood (@RobinhoodApp) February 25, 2021”
The app offers an intuitive user interface and also educational articles which explain cryptocurrencies and it is targeted at novice traders that don’t have the technical knowledge to operate more advanced trading platforms. Robinhood also offers zero-fee trading but it does make money on spreads between makers and takers. The report reinforced the premise that retail arrived a few months of steady institutional investment which has pushed high cap crypto assets like ETH and BTC to their highest prices:
“The numbers are clear: 2021 has started with a crypto bang.”
A few days ago, the company CEO and Co-founder Vlad Tenev revealed that the total value of customer assets on the exchange surpassed the net amount of money that they have deposited by over $35 billion:
“While markets fluctuate, this tells me that our business model is working for everyday Americans.”
The numbers are quite bullish for the app but the crypto correction is getting deeper and March is usually extremely bearish for the markets. Since the all-time high of $1.78, the total market cap declined by 18% to $1.46 trillion as per the data by Coingecko. BTC was leading the drop with an 18.% fall from the $58K peak last weekend to over $47K at the time of writing. ETH was hit harder and retreated 27% from the ATH of over $2 to below $1500.
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