Bitstamp Drives Robinhood's Crypto Rebound, but Year-Over-Year Gaps Remain

Robinhood's crypto rebound in August was significant, but it still lags behind last year's pace. The platform's combined notional volume reached $17.5 billion, a 61% increase from July and 38% below August 2022.

The lion's share of the activity came through Bitstamp, which supplied $10.1 billion, or 57.7% of the total. This is a positive sign for Robinhood, as the acquisition of Bitstamp has expanded its addressable market and provided more volume.

However, the core app still trails last year's performance, with a 72% monthly rebound from July but a 46% decline from August 2022. The year-over-year comparison shows that combined crypto volume remains $10.6 billion below last year's pace, and the app alone is $6.3 billion lower.

For Robinhood investors, the next key indicator will be revenue conversion: how much crypto transaction revenue translates to actual earnings. August saw an improvement in raw material for this metric, but the company must demonstrate a better take rate on Bitstamp and Chain activity in its next earnings report.