Odaily Frontline | Robinhood Adds 6 Million Crypto Users in 2021
This article comes fromCrypto Potato, original author: Martin Young
Odaily Translator | Nian Yin Si Tang
This article comes from
, original author: Martin Young
Odaily Translator | Nian Yin Si Tang
Robinhood, a stock and cryptocurrency trading platform, has reported a surge in new users to its platform this year, as everyone wants a piece of the cryptocurrency pie.
In a Feb. 26 blog post titled "Crypto Goes Mainstream," the retail trading app revealed that it had added 6 million new users to its Robinhood Crypto platform so far this year.The number of users making monthly purchases on its crypto platform in 2021 is 15 times the 2020 average.“By comparison, this figure reached 401,000 in a single month last year, and during 2020, an average of about 200,000 users per month traded on Robinhood Crypto for the first time.” The article revealed.
Suspension of trading
, and then restarted instant deposits for cryptocurrency purchases in early February. The platform currently only offers 7 tradable cryptoassets: Bitcoin (BTC), Bitcoin Cash (BCH), Bitcoin SV (BSV), Dogecoin (DOGE), Ethereum (ETH), Ethereum Classic (ETC) and Litecoin (LTC) .
Robinhood Crypto has no transaction size limit, but the article says the average transaction size for users is around $500. The provided chart shows that the average transaction value in the previous year was about $200-$250, which is half the current size.
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The surge in retail investors
The app offers an intuitive user interface and educational articles explaining cryptocurrencies. It is aimed at novices who may not have the technical knowledge to operate a more advanced trading platform.
The platform also offers zero-fee transactions, but makes money from the spread between Makers and Takers.In the article, Robinhood emphasized the premise that this wave of retail investors came after months of steady institutional investment, which pushed many high-cap crypto assets like Bitcoin and Ethereum to new all-time highs.Robinhood CEO and Co-Founder Vlad Tenev on February 18
a briefing
According to the report, the total value of Robinhood's user assets across all markets exceeds its net deposited funds by more than $35 billion. He added: "When the market is volatile, it tells me that our business model works for the average American."
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Crypto Markets Experience a Pullback
Robinhood's data is positive for the overall sentiment, but the crypto market correction is intensifying, and March is usually a bear month for the market.
Since hitting an all-time high of $1.78 trillion on Feb. 22, the total crypto market capitalization has fallen 18 percent to $1.46 trillion today, according to Coingecko data.
