Robinhood Gains Market Share in Crypto Trading

Investing.com — Robinhood Markets (NASDAQ:HOOD) is gaining market share in retail cryptocurrency trading from rival Coinbase (NASDAQ:COIN) amid the Bitcoin rally to $100,000, which has driven trading volumes across platforms, Mizuho (NYSE:MFG) said in a note.

Robinhood reported $51 billion in crypto trading volumes for October and November, whereas Coinbase accounted for $237 billion for the same period, but much of its volume came from institutional trading.

Despite Robinhood offering fewer than 10% of the tokens available on Coinbase, it has seen its retail crypto trading volume rise to over half of Coinbase. Platform’s simplicity and cost-effectiveness could be driving more volumes.

Mizuho also noted Robinhood’s pricing as "attractive" to retail investors.

Adjusted for retail activity, Coinbase's share of the combined Coinbase-Robinhood retail crypto market fell to the low 60% range during the period, down from about 70% in the third quarter, according to the note.

“We expect this trend to continue in the coming years, helped by HOOD's more attractive pricing.”

Amid the frenzy, Coinbase’s spot exchange trading volumes averaged nearly $6 billion a day in November, tripling from $2 billion in the third quarter.

Mizuho raised its price target on Coinbase to $250 from $215, driven by higher market multiples and improved near-term prospects. However, the brokerage maintained a cautious outlook for the medium term, citing potential challenges in sustaining growth.