Robinhood HOOD Volumes Rank 19th as Crypto Revenue Slumps and Valuation Concerns Mount

Robinhood Markets (HOOD) closed August 6 with a 0.18% rise, trading on $3.42 billion in volume, ranking 19th in U.S. equity activity. Recent developments highlight persistent challenges in its core transaction revenue, particularly in crypto trading, despite a 65% annual increase in Q2 2025 earnings. Sequential declines in both crypto and stock trading revenue underscore weakening momentum, with crypto-related income down over 50% from its 2024 peak. The platform’s monthly active users also fell to 12.8 million in Q2, the second consecutive quarter of attrition.

Net interest revenue remains a buffer amid falling U.S. interest rates, surging to $357 million in Q2 2025—a 25% annual increase—due to expanded margin loans and client cash balances. However, analysts warn that reliance on interest income may prove unsustainable as rate cuts continue, shifting focus back to transaction revenue. The company’s price-to-sales ratio of 29, over three times its five-year average, raises concerns about valuation sustainability given recent operational headwinds.

Historical patterns suggest vulnerability in crypto-driven revenue streams. Similar to the 2021–2022 cycle, where crypto revenue plummeted 75% after a 4,560% surge, 2025 data indicates a repeat trajectory. Declining speculative token activity and user migration away from crypto trading further complicate growth prospects. Analysts caution that without a 180% year-over-year revenue increase, the stock’s elevated valuation may face downward correction.

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