On Monday, Robinhood Markets shares plunged 8.7%, registering the steepest drop among S&P 500 constituents. The sell-off coincided with a weekend crypto market rout that erased more than $150 billion in digital asset value. Investors reacted to the nomination of Kevin Warsh for Federal Reserve Chair, raising expectations for more aggressive rate hikes. The combination of macroeconomic hawkishness and intense volatility in the cryptocurrency sector triggered a wave of liquidations across retail trading platforms.

In its third quarter, Robinhood generated 37% of its transaction revenue from cryptocurrency trading and 42% from equity options. That concentration has amplified its sensitivity to speculative asset fluctuations. On the same trading day, trading volume on the platform fell 22% compared with the prior week, with crypto volume down 28% and options volume off 19%. The company’s total daily average revenue trades slipped to 760,000, from 980,000 in the preceding period.

Despite the recent weakness, Robinhood’s active user base expanded 27% year-over-year to reach 25.6 million. Monthly active users climbed to 15.4 million, fueled by new features such as cash management and fractional share purchases. Total net revenue more than doubled over the last 12 months, rising to $1.2 billion in the latest quarter. Management reiterated its full-year guidance for at least 30% revenue growth and emphasized ongoing investments in artificial intelligence tools to personalize trade recommendations and reduce customer churn.