February proved to be a chilly month for crypto trading on Robinhood (HOOD). We saw a significant dip in crypto trading volumes on the platform, with numbers tumbling a hefty 29% compared to January. This sharp decrease, largely driven by retail traders, might just be a heads-up for other players in the game, including the likes of Coinbase (COIN).

Looking at the numbers, this month-over-month drop meant crypto trades landed at $14.4 billion. And while it’s true that equities and options trading also saw a slight downturn, their 1% decrease each was minimal in comparison. Interestingly, despite this recent dip, Robinhood pointed out in a press release that even with the slump, February’s crypto trading volume was still more than double what it was the year before.

These figures really highlight the impact of the overall cryptocurrency market’s slide last month. Bitcoin (BTC) took a hit, losing around 15% of its value, and the broader CoinDesk 20 Index (CD20) wasn’t spared either, dropping by approximately 23%. Looking at the bigger picture across all centralized crypto exchanges, spot trading also felt the chill, falling 19% to $2.3 trillion in February, down from January’s numbers, according to CoinDesk data.

Even the usually vibrant memecoin scene saw a bit of a slowdown. Take Pump.fun, for example, a leading platform for launching these hyped-up tokens. According to data from 10x Research, the daily launches of new memecoins on Pump.fun took a nosedive, plunging from 62,000 all the way down to 24,000.

This overall cooling in cryptocurrency trading volumes suggests that everyday investors might be taking a step back from the crypto space for now. And this could spell changes for other exchanges, particularly those like Coinbase (COIN) that are popular with the same retail crowd.

When we look at stock performance, Robinhood shares, a trading platform known for its appeal to retail investors and offering both traditional stocks and crypto, have edged down by 4% so far this year. Coinbase, on the other hand, has felt a more significant impact, with its shares dropping 15% – a reflection of the broader crypto market’s pullback.

However, Coinbase isn’t just weathering the storm. They’ve been actively expanding their reach into services for bigger institutions and building up their blockchain infrastructure business. This strategic diversification could be a smart move to cushion the impact if retail trading activity remains sluggish. Adding to their moves, Coinbase recently announced they’re diving into the world of 24/7 trading for bitcoin and ether futures, potentially opening up new avenues for growth.