Robinhood has announced a significant uptick in its trading volumes across various asset classes, setting the stage for an 11% increase in its stock value during premarket trading on Thursday.
This surge follows a stellar performance in February, wherein the company witnessed heightened trading activity, signaling robust engagement from its user base. February proved to be an exceptionally fruitful month for Robinhood, as the platform saw a substantial increase in trading volumes. Equity trading experienced a notable jump of 36%, reaching a total of $80.9 billion.
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Furthermore, options contracts traded on the platform rose by 12% to $119.1 million, while cryptocurrency trading volumes grew by 10%, amounting to $6.5 billion. These figures underscore a growing interest in various investment vehicles among Robinhood users, contributing to an overall increase in total assets under custody by 16% from January, summing up to $118.7 billion at the end of February.
Robinhood’s Strategic Expansion in Europe
Robinhood’s Europe division has recently made USD Coin (USDC) available on its platform. With this new listing, Robinhood now offers more than 25 different cryptocurrencies. Additionally, the company introduced a USDC rewards program, which offers up to 10% in rewards for those who qualify.
USDC is now live on Robinhood Crypto!
Learn more about Robinhood Crypto and our full list of supported crypto assets:https://t.co/7RPwXtYHsU pic.twitter.com/UrZHvD8dO4
— Robinhood Crypto EU (@RobinhoodCrypto) February 29, 2024
This move is designed to encourage the holding and trading of USDC while also aiming to improve users’ knowledge of the cryptocurrency market through an educational campaign. Consequently, Robinhood’s efforts demonstrate a commitment to broadening its range of services and to helping its users gain a more comprehensive understanding of cryptocurrency.
Stock Performance and Market Outlook
The announcements have had a palpable impact on Robinhood’s stock performance. The stock witnessed a nearly 12% rise in pre-market trading, pushing the price above $19. This upward trajectory is particularly noteworthy, considering the stock closed at $17.16 in the previous session, marking a significant turnaround from the earlier losses incurred at the beginning of the week.
Analysts are keenly observing this momentum, with Broker Bernstein initiating coverage of Robinhood with an outperform rating and a $30 price target. This optimistic stance is bolstered by expectations of a burgeoning crypto market, projected to almost triple in total market cap by 2025.
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