Arkham Exchange, the trading platform launched by blockchain analytics firm Arkham Intelligence, is set to close operations, as per a CoinDesk report.
The development marks a sharp turn for a company that had tried to expand beyond on chain data into direct crypto trading.
The exchange has struggled to gain meaningful traction in a market dominated by much larger rivals.
The planned shutdown underscores how difficult it remains for mid sized platforms to convert brand recognition into sustained trading activity, even during periods of broader crypto market growth.
Expansion plans stalled
Founded in 2020, Arkham Intelligence positioned itself as a data focused crypto firm. It is said to have around 3 million registered accounts.
In October 2024, it floated plans to introduce a crypto derivatives exchange.
The move was designed to challenge established platforms and capture retail trading demand.
By early 2025, Arkham Exchange had launched spot crypto trading across several US states.
The company later introduced a mobile trading app in December, aiming to widen access and boost activity.
However, trading volumes remained modest. According to the report, Arkham recorded just under $620,000 in trading over the past 24 hours.
That figure stood in sharp contrast to the larger competitors.
Fierce competition in crypto trading
Binance, the world’s largest crypto exchange by volume, posted nearly $9 billion in daily trading, notes CoinDesk.
Coinbase, ranked second, recorded around $2 billion over the same period.
The gap highlights the challenge for newer entrants attempting to scale in a market where liquidity often concentrates on a handful of platforms.
High volumes tend to attract more traders, reinforcing the position of leading exchanges and making it harder for smaller venues to compete on pricing and depth.
Arkham’s efforts to diversify into derivatives and expand geographically did not appear to shift that dynamic.
While the company had aimed to compete for retail investors, it faced established brands with deeper liquidity and broader product suites.
Investor backing and strategic shift
Arkham Intelligence attracted backing from several well-known investors. Its supporters include Sam Altman, Draper Associates, Binance Labs and Bedrock.
The decision to wind down the exchange suggests a shift in focus back to the company’s core analytics business.
Arkham first gained attention for tools that track blockchain transactions and link wallet addresses to real world entities.
The closure comes after a period in which crypto markets have seen heightened competition among trading platforms.
Exchanges have been adding new products, mobile features and regional licences in a bid to capture users and retain market share.
For Arkham Exchange, the combination of low volumes and intense rivalry appears to have limited its ability to scale.
Although the company had set out to challenge industry leaders, daily trading activity remained far below that of Binance and Coinbase.
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