📉 Crypto Exchanges Under Pressure: Why Coinbase and Gemini Are Facing a Slump
Public crypto exchanges are facing challenges. The shares of Coinbase, Gemini, and Bullish have decreased approximately 55% in the last three months. This decline is due to reduced retail interest and lower trading volumes.
Key Points:
Coinbase: Trading activity decreased by 40% in Q4 2025 (to $264B). January 2026 saw even lower revenue, reportedly half of the same period last year.Bullish: Despite focusing on institutional clients, their January activity decreased by 28% year-over-year.Gemini: Analysts predict the exchange will break even only by 2028, a year later than previously expected.
Factors Behind the Numbers:
Experts from Citigroup and Clear Street have identified several factors:
Reversal of FOMO Effect: When prices rise, interest increases. When prices fall, it is difficult to keep retail traders.Tech Sector Concerns: Investors are pulling back from tech stocks due to AI valuation concerns and global geopolitical tensions.Macro Sentiment: Market exhaustion and high-risk aversion are preventing capital from entering the crypto space.
Is this a temporary decline or a long-term shift in exchange dominance?
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