Gemini has reported its lowest retail trading volume in three years, despite an overall increase in crypto trading activity. The exchange's total spot trading volume rose 18% from the second quarter to $4.5 billion, with institutional volume climbing 26% to $3.9 billion. However, retail volume fell 14% to $600 million, the lowest level since the third quarter of 2023. Gemini attributed the increase in spot trading volume to increased institutional Zcash activity and expanded market-making, but did not provide a specific reason for the retail decline.
Despite the retail slump, Gemini's exchange revenue increased 7% from the previous quarter to $13.4 million, with institutional revenue more than doubling. Retail traders remained the largest source of exchange revenue, contributing nearly three-quarters of the total. The company's prediction exchange, Gemini Predictions, saw revenue increase 52% quarter-on-quarter to $796,000, though it was not enough to offset declines elsewhere.
Other crypto exchanges also reported softer trading activity in the most recent quarter. Coinbase saw consumer spot trading volume fall 9% to $23.4 billion, while Robinhood's crypto revenue dropped 55% year-on-year to $120 million. Both companies offset some of the declines with increased revenue from prediction markets.
Gemini is looking to expand its prediction markets, with average daily traders in October running about 50% above the third-quarter average. Nearly a third of new prediction traders were new to Gemini, more than double the proportion in Q3. The company is also seeking to distribute its event contracts through other platforms, including a nonbinding agreement with Apex Fintech Solutions.