As Robinhood struggles with its share price plummet, could increasing its cryptocurrency offerings help boost the company's prospects?
Robinhood is a financial services company that also acts as a retail business platform for ordinary users. He is known for meme actions and currently offers seven cryptocurrencies to trade.
Since August 4, Robinhood (HOOD) has fallen almost 70% of its ATH from $ 70.39 to $ 25.94, and it has been below the $ 38 IPO price for weeks. Several factors are contributing to the drop, such as a drop in daily cryptocurrency stock trading and memes as the era of the pandemic draws to a close and people return to their offices to work.
Robinhood enjoyed huge gains in the second quarter of 2021 when Dogecoin (DOGE) Commerce accounted for 41% of Robinhood's total revenue and 62% of the $ 233 million generated from cryptocurrency trading.
However, cryptocurrency trading fell 79% in the third quarter and only accounted for 19% of its total. income.
TipRanks contributor Chris MacDonald still believes that cryptocurrency is the key to Robinhood's long-term success.
โRobinhood appears to continue to increase its efforts to become the most used exchange out there. Those who think cryptocurrencies are real and are here for the long haul may want to take a close look at this company right now. "
There is also a high demand for Robinhood to launch its wallet feature, which currently has over 1.6 million users on the waiting list. That's roughly 7% of their total user base at the end of Q3 2021. While some plan to trade more with the wallet, others may simply want to withdraw their existing tokens from the Robinhood platform.
The brokerage has not said anything definitive about the Shiba Inu (SHIB) listing. There is a lot of momentum from the community, including a petition to include SHIB in Robinhood which currently has 541,000 signatures. Kraken competitor this week launched SHIB trading which was followed by a 30% increase in price. Such price action may help convince Robinhood of the merits of listing memecoin given the potential to repeat the growth it experienced since the DOGE trading frenzy in the second quarter.
Related: Robinhood Exec Says Single Digital Asset Regulator Proposal Is Stupid
Despite the current stagnation in prices, Wall Street seems to view HOOD favorably for now. Nasdaq has indicated an average price target of $ 45 from 13 analysts, representing a potential upside of 73.3%.
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