While Robinhood is struggling with falling stock prices, can the increased supply of cryptocurrencies help improve the company’s prospects?

Robinhood is a finance company that also serves as a retail platform for regular users. It is known for its stock of memes and currently offers seven cryptocurrencies for trading.

Since August 4, Robinhood’s price (HOOD) has fallen almost 70% from ATH at $ 70.39 to $ 25.94, and has been below $ 38 per listing for several weeks now. There are many factors contributing to this decline, such as the decline in daily trading in cryptocurrencies and meme stocks as the pandemic nears its end and people return to the desk to work.

Robinhood showed great success in the second quarter of 2021, when trading in Dogecoin (DOGE) accounted for 41% of Robinhood’s total revenue and 62% of $ 233 million generated from cryptocurrency trading.

However, cryptocurrency trading fell 79% in the third quarter and accounted for only 19% of total revenue.

Chris MacDonald of TipRanks continues to believe that cryptocurrency is the key to Robinhood’s long-term success.

Robinhood seems to continue to step up its efforts to become the most widely used stock exchange. Those who believe that cryptocurrency is real and have been here for a long time can take a closer look at this company right now. ”
There is also great demand for the launch of the Robinhood Wallet feature, which currently has more than 1.6 million users on the waiting list. This represents approximately 7% of the total user base at the end of Q3 2021. While some plan to shop more using the wallet, others may simply want to withdraw existing tokens from the Robinhood platform.

The brokerage firm has not said anything definitive about the Shiba Inu (SHIB) listing. There is a lot of pressure from society, including a request to include SHIB in Robinhood, which currently has 541,000 signatures. Rival Kraken launched SHIB trading this week, after which the price increased by 30%. This price action could help convince Robinhood of the benefits of listing memcoin, if the rally seen in the insane DOGE trading results in the second quarter shows up.

On the subject: Robinhood CEO says the proposal for a single digital asset regulator is an idiot

Despite the current fall in prices, it appears that Wall Street is favoring HOOD for the time being. Nasdaq indicated an average price target of $ 45 from 13 analysts, which represents a 73.3% chance of an upside.

Source: CoinTelegraph