- 9.5M users traded crypto via Robinhood during the first quarter of 2021, almost a sixfold increase from the 1.7M in the fourth quarter of 2020
- Robinhood’s rising popularity can be attributed to the accelerated growth of the crypto market over the past few months
- Amid the first quarter, Robinhood faced vile criticism and backlash for its decision to terminate GameStop trades temporarily
The online broker Robinhood has become a significant hub for cryptocurrency trade, providing evidence of the crypto boom and its mainstream appeal. Reported Thursday, a hefty 9.5 million users traded crypto via the popular trading platform during the first quarter of 2021, a gigantic sixfold increase from the 1.7 million in the fourth quarter of 2020.
The trading app primarily targets inexperienced investors and is popular with millennials. Launched in 2018 January, the crypto unit of 2013-founded Robinhood offers commission-free trade of cryptocurrencies, including Bitcoin (BTC), Bitcoin Cash (BCH), Bitcoin SV (BSV), Litecoin (LTC), Ether (ETH), Dogecoin (DOGE) and Ethereum Classic (ETC).
Robinhood’s Rise: a result of crypto market growth
A significant part of Robinhood‘s Rise can be attributed to the crypto market’s accelerated growth over the past few months. Starting with barely $776 billion at the start of 2021, the global crypto market capitalization more than doubled within just three months to a whopping $2 trillion in early April.
With Bitcoin’s market dominance of 54.52%, the twofold increase in price from below $30,000 on January 1st to $60,792.55 now heavily contributed to the crypto market growth. And as Bitcoin’s prices moderated, altcoins took over.
Robinhood’s not-so-good Quarter mid
However, 2021 hasn’t been purely positive for the company either. Robinhood‘s decision to temporarily terminate trades of certain stocks, including GameStop, due to volatile market conditions caused huge controversies. The brokerage faced vile criticism, and its public image deteriorated immensely. Despite the setback, it decided to go with its initial public offering, filed with the SEC last month. As of now, no set date for the IPO has been released yet.
Stellar Quarterly Results
Reporting such stellar quarterly results, Robinhood joins the league with the crypto-based exchanges Coinbase and Kraken. Based on the recent reports, Kraken seems to be contemplating a public offering, possibly during early 2022.
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