Renowned online brokerage platform Robinhood has experienced a flood of cryptocurrency user sign-ups since the starting of this year.
In each of the primary two months of this year, the platform revealed that it experienced a jump from a mean of around 200k per month in 2020 to a mean of around 3 Mln, consistent with an official web-blog post.
Google search trends, a metric that appears at search term data by region, reveals overall interest in cryptocurrencies has increased fourfold the maximum amount as compared to the end of last year. Moreover, Glassnode, an on-chain market intelligence platform, shows the number of new bitcoin addresses also rose sharply within the same time period.
The total yearly sign-ups for cryptocurrency users on the Robinhood platform now stand over 6 Mln, data reveals.
The new sign-ups have come as the platform faced accusations for deliberately limiting trading on stocks like GameStop [GME] and other securities last month after a gaggle of retail investors on a Reddit forum began a purchasing frenzy.
The accusations leveled against the platform have supported the assumption the brokerage halted purchase orders to stem the bleeding from Wall Street hedge funds. The funds at the time were overleveraged on their positions and were required to hide their shorts when the worth of GME pumped, costing the large funds billions.
Robinhood CEO Vlad Tenev later described the choice over the incident as being supported by a technical and operational one and not from outside sources like those on Wall Street.
United States congressional hearings later summoned Tenev to arrive before a committee where little detail was gleaned over the saga. Tenev outlined points about how Robinhood affected purchasing of GME stock due to the margin requirements of clearinghouses.
The platform has begun allowing retail traders the power to transfer their crypto holdings on and off the platform where earlier it had solely permitted users to purchase and sell their crypto assets.
Nevertheless, crypto investors have continued to pour money into the platform averaging monthly deposits of around $400 USD to $500 USD, up from the earlier year’s $250 USD average, consistent with the platform.