The final three months of 2024 are poised to be a pivotal period for the cryptocurrency market, particularly with the anticipated surge in trading activity on the popular app Robinhood (HOOD). As analysts turn their attention to this leading platform, expectations are building around its performance in the wake of significant political events, notably the election of Donald Trump in November.
Analysts project an astonishing 440% increase in Robinhood’s cryptocurrency trading revenue, forecasting it could reach $345.5 million, according to FactSet. This sharp rise comes as a reflection of heightened user engagement leading up to and following the election, as retail traders flock back to the app in anticipation of a more favorable macroeconomic environment for both stocks and crypto.
Robinhood’s share price has experienced remarkable growth, soaring 350% over the past year and climbing 37% in the first few weeks of 2025 alone. This resurgence mirrors a robust recovery within the retail trading landscape, further fueled by increasing optimism regarding the broader financial markets.
In addition to the projected upswing in cryptocurrency revenue, Robinhood’s total revenue for the fourth quarter is estimated at $934.9 million, a significant rise from $660.5 million in the previous quarter. Analysts anticipate earnings per share to hit $0.41, up from $0.18, indicating solid financial health.
Robinhood’s trading volumes often serve as an indicator for other players in the crypto space, notably Coinbase (COIN). According to Barclays analyst Benjamin Buddish, Robinhood reported impressive growth in crypto trading, reaching approximately $69 billion in total volumes through December 27, marking a five-fold increase quarter-over-quarter and a six-fold increase year-over-year.
This surge suggests that Coinbase’s retail trading volumes could exceed $108 billion, even with conservative estimates taken into account. This correlation could position Coinbase favorably ahead of its own earnings report, set to be announced shortly after the close on Thursday.
Coinbase is expected to report one of its strongest quarters to date, with projections estimating revenues of $1.8 billion and earnings per share around $1.99. Historically, Robinhood’s performance has often impacted Coinbase’s share price, leading to speculation that a positive report from Robinhood could bolster investor confidence in Coinbase as well.
With shares of COIN up 90% over the past year and currently trading at $269.88, the synergy between Robinhood and Coinbase presents an intriguing narrative for investors. Meanwhile, HOOD’s stock, having increased 370% during the same period, stands at $54.33 at the time of this report, signaling a broader recovery and heightened interest in cryptocurrency trading.
As 2024 draws to a close, all eyes will be on Robinhood’s results and their potential implications for the cryptocurrency market. With industry dynamics shifting and retail traders returning in droves, the coming weeks promise to be crucial for both Robinhood and its peers.
