Gemini’s quarterly retail trading volume sinks to 3-year low
Crypto exchange Gemini reported its lowest quarterly retail trading volume in three years during Q3, despite a 18% increase in total spot trading volume to $4.5 billion.
The decline in retail trading comes as institutional volume climbed 26% to $3.9 billion, according to Gemini's Q3 earnings report. Retail traders remained the largest source of exchange revenue, contributing nearly three-quarters of the total $13.4 million in exchange revenue.
Prediction markets offset decline
Crypto exchanges are increasingly turning to prediction markets to offset softer trading activity. Coinbase reported consumer spot trading volume fell 9% to $23.4 billion, with its CFO noting that "continued growth in prediction markets helped offset softer crypto trading activity."
Robinhood saw crypto revenue fall 55% year-on-year to $120 million, offset by a sixfold increase in event-contract revenue to $173 million. Gemini's own prediction exchange saw revenue increase 52% quarter-on-quarter to $796,000.
continued growth in prediction markets helped offset softer crypto trading activity.
Expansion strategy
Gemini reported stronger prediction-market activity heading into Q4, with average daily traders in October running about 50% above Q3 levels. Nearly a third of new prediction traders were new to Gemini, more than double the proportion in Q3.
The company is seeking to distribute its event contracts through other platforms, having signed an August nonbinding agreement with Apex Fintech Solutions. This would make Gemini Titan the exclusive venue for crypto event contracts distributed through Apex's futures brokerage.
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