The early freewheeling era of crypto trading took a final blow as BitMEX announced it would permanently shut down its operations in September. The platform, famous for inventing the perpetual swap in 2016, may not be the last.
At least three other crypto firms have announced closures or bankruptcies in the past week, including Bitmart, which let its users know they have 30 days to close trades and six months to withdraw all their funds from the platform. Users have raised concerns about withdrawal delays following the announcement. BitMart did not specify why it was closing.
Analysts say exchanges can no longer survive on retail hype alone; they need institutional compliance, clear proof of reserves, and cross-asset trading to stay alive. Jason Fernandes, co-founder of AdLunam, says he believes it all boils down to a steep fall in retail trading.
“There isn't enough volume or retail trading anymore,” said Fernandes, who is also a crypto market and blockchain investment analyst. “Retail interest even in Telegram groups has dropped significantly.”
"We are going to see a lot more of these closures announcements. I think the only exchanges that will survive are those not dependent on retail trading to be successful. In the short term, I don't see a return for retail trading in the numbers we used to see in 2021."
Trading volume falling
Crypto’s centralized exchanges are experiencing their quietest stretch in over two years., Spot trading volume across major centralized venues fell to $1.05 trillion by April 2026, its lowest monthly total in 25 months, according to the CoinDesk Data Exchange Review. For context, that represents a steep plunge from the historical monthly activity recorded during peak market cycles. Colin Wu of Wu Blockchain recently revealed that in South Korea, trading volume at the top five crypto exchanges had dropped 88%.
But it’s not just crypto exchanges. Movement Labs and Storj Labs filed for Chapter ll bankruptcy, marking the third and fourth crypto-related company failure, respectively, in seven days as investor capital shifts heavily toward artificial intelligence.
The unexpected closures highlight a potential new reality for the industry. Retail speculation and interest have weakened, and platforms carrying historical regulatory baggage can no longer afford to continue operating. For years, platforms like BitMEX relied purely on company reputation and the high-leverage gambling habits of day traders. New regulatory regimes, such as the European Union’s (EU) Markets in Crypto-Assets Regulation (MiCA) rules, are making smaller, regional venues too expensive to run.