Crypto Exchanges’ Stock Plunge 60% as Trading Volumes Dwindle – Is the Decline Ending or Just Beginning?
Key Takeaways
- Trading volumes on major crypto exchanges have drastically fallen, with a nearly 90% drop from October to January 2026.
- The decline in trading activity has severely impacted the stock prices of leading exchanges like Coinbase and Bullish, which have witnessed steeper declines than Bitcoin itself.
- A significant $19 billion liquidation event further dampened market sentiment, reducing participation from both retail and institutional traders.
- Despite the downturn, there is no indication of exchange failures or regulatory crackdowns characteristic of previous crashes.
- Historical patterns suggest that crypto market recoveries rely more on structural changes than on a resurgence of speculative enthusiasm.
WEEX Crypto News, 2026-02-03 07:57:51
In the past few months, the cryptocurrency landscape has been marred by plummeting exchange stocks and diminishing trading volumes. This has prompted substantial speculation regarding whether the industry is reaching the nadir of another downturn or merely commencing one of its most rigorous phases. Stocks of key exchange operators have experienced a precipitous decline of 40-60% since October, driven by a precarious drop in spot trading volumes. This loss has undone much of the substantial gains accrued earlier in the previous year.
Crypto Spot Volume Falls Nearly 90% From October Peak
Centralized exchange spot trade volumes witnessed their pinnacle in January 2025 and then again in October, with activity soaring to approximately $2.3 trillion. However, Binance reported transactions nearing a staggering $1 trillion in October, accounting for over 40% of all volumes. The succeeding months saw a collapse in total spot trading across exchanges, declining to roughly $1.7 trillion in November. This diminishing trend carried on into December with trades dipping to $1.2 trillion, eventually plummeting to an alarming $120-150 billion by January 2026, marking an almost 90% reduction since October.
Binance maintained its stature as the largest exchange with trades totaling around $70 billion to $80 billion, while other exchanges could only muster single- to low-double-digit billions in their trading volumes. According to data from CoinGecko, Binance retained this preeminent position into December, holding a market share of 38.3%, albeit witnessing a drop in spot trading volumes by over 40% month-on-month to $361.8 billion. Other major platforms, including Bybit and MEXC, similarly reported double-digit percentage declines.
Despite the total spot trading volumes across the top 10 exchanges having incrementally improved on a yearly basis in 2025, the latter part of the year was marred by a discernible deceleration, with several pivotal platforms recording annual decreases.
Impact on Exchange Stocks
The stagnation in trading activity is directly impacting the stocks of major exchanges. Shares of companies such as Coinbase, Gemini, and Bullish have underperformed compared to broader equity markets since October, registering sharper declines in contrast to Bitcoin itself, which saw a drop of approximately 35% from its zenith.
Coinbase’s shares fell by 40.4% over the past six months, closing at $189.62, mirroring the contraction in exchange volumes. Similarly, Bullish experienced a steep plunge, with its shares falling by 56.7% over the same period to $29.43. However, Robinhood Markets exhibited more resilience, with its shares declining by 16.0% over six months to $89.37, thus outperforming its crypto-native counterparts throughout the said period.
After $19B Liquidation, Traders Step Back and Volumes Slide
The current market dynamics are characteristic of familiar crypto downturns. Typically, as prices escalate, trading volumes surge, driven by investor eagerness to capitalize on momentum. Conversely, when sentiment deteriorates, participation decreases precipitously, exacerbating revenue declines for exchanges.
The latest slump follows a historic liquidation event on October 10, where nearly $19 billion worth of positions were wiped out, resulting in dampened risk appetites among both retail and institutional traders. Over 1.66 million crypto traders were liquidated during this sharp market downturn, erasing $19.33 billion in positions.
This particular cycle varies from previous crashes in some critical regards. Notably absent are the failures of exchanges and the waves of regulatory crackdowns that characterized past decreases. Rather, this pullback appears to stem from a combination of exhaustion following a sharp rise, a restrictive macroeconomic environment, and a broader risk-off movement in global financial markets.
Historical Context and Market Recovery
Historically, such contractions in trading volumes have accompanied crypto winters following significant bullish periods, such as the Mt. Gox debacle in 2014, the collapse of the ICO bubble in 2018, and the liquidity crisis of 2022. Recoveries have historically taken years and were largely driven by new structural catalysts rather than a swift resurgence of speculative fervor.
For example, following the Mt. Gox incident, the market took years to regain its footing, while the post-ICO bubble recession lasted until projects with genuine utility emerged, providing a tangible foundation for recovery. Similarly, post-2022’s liquidity crunch, gradual regulatory clarity and advances in decentralization technologies helped stabilize market conditions. The current downturn seems to follow this pattern, indicating that bounce-backs may, once again, depend on significant sectoral shifts rather than mere renewed speculative activities.
The Road Ahead for Crypto Exchanges
In light of the ongoing volatility within the crypto market, crypto exchanges are undertaking measures to mitigate risks and adapt to changing landscapes. Some platforms are increasingly focusing on diversifying their revenue streams beyond spot trading to encompass derivatives, NFTs, and DeFi services, which can provide more stable returns amid uncertain trading environments.
Moreover, exchanges are putting greater emphasis on regulatory compliance and risk management, essential for building investor confidence and promoting sustainable growth. This strategic shift is not only aimed at securing immediate relief but also at bolstering long-term resilience against future market disruptions.
The recent downturn also highlights an ongoing need for enhanced transparency and accountability within the industry, as stakeholders across the spectrum demand greater insights into the inner workings of these exchanges. Transparency initiatives are vital in fostering trust among investors and regulators alike, paving the way for a more robust and credible sector.
Conclusion
The massive plunge in crypto exchange stocks and trading volumes underscores the inherent volatility in digital currency markets. While this downturn presents significant challenges, it simultaneously offers opportunities for strategic repositioning and innovation. As exchanges grapple with navigating these tumultuous waters, they are making critical strides toward enhancing their business models and fortifying them against future downturns. A recovery path will likely necessitate concerted efforts across industry players to build a more resilient, transparent, and sustainable ecosystem.
Frequently Asked Questions
What caused the recent decline in crypto exchange stocks?
The recent decline was primarily driven by a substantial drop in spot trading volumes on centralized exchanges, which in turn was affected by a broader risk-off sentiment in global markets and diminishing investor activity.
Why did trading volumes fall so drastically from October to January?
The fall in trading volumes was influenced by several factors, including a significant $19 billion liquidation event, macroeconomic pressures, and a general risk aversion among both retail and institutional traders.
How do current market conditions compare to previous crypto crashes?
Unlike past crashes characterized by exchange failures and regulatory crackdowns, the current downturn is largely attributed to a restrictive macroeconomic landscape and market exhaustion after prolonged surges.
What steps are exchanges taking to adapt to the current downturn?
Exchanges are diversifying their revenue streams, emphasizing regulatory compliance, and enhancing transparency to build trust and resilience against future market disruptions.
When can we expect a recovery in crypto markets?
Based on historical trends, market recoveries are generally driven by significant structural changes and not mere speculative interest. It may take considerable time and transformational developments before a sustained recovery is witnessed.
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Sun Valley Releases 2025 Financial Report: Bitcoin Mining Revenue Reaches $670 Million, Accelerating Transformation to AI Infrastructure Platform
On March 16, 2026, in Dallas, Texas, USA, CanGu Company (New York Stock Exchange code: CANG, hereinafter referred to as "CanGu" or the "Company") today announced its unaudited financial performance for the fourth quarter and full year ended December 31, 2025. As a btc-42">bitcoin mining enterprise relying on a globally operated layout and dedicated to building an integrated energy and AI computing power platform, CanGu is actively advancing its business transformation and infrastructure development.
• Financial Performance:
Total revenue for the full year 2025 was $688.1 million, with $179.5 million in the fourth quarter.
Bitcoin mining business revenue for the full year was $675.5 million, with $172.4 million in the fourth quarter.
Full-year adjusted EBITDA was $24.5 million, while the fourth quarter was -$156.3 million.
• Mining Operations and Costs:
A total of 6,594.6 bitcoins were mined throughout the year, averaging 18.07 bitcoins per day; of which 1,718.3 bitcoins were mined in the fourth quarter, averaging 18.68 bitcoins per day.
The average mining cost for the full year (excluding miner depreciation) was $79,707 per bitcoin, and for the fourth quarter, it was $84,552;
The all-in sustaining costs were $97,272 and $106,251 per bitcoin, respectively.
As of the end of December 2025, the company has cumulatively produced 7,528.4 bitcoins since entering the bitcoin mining business.
• Strategic Progress:
The company has completed the termination of the American Depositary Receipt (ADR) program and transitioned to a direct listing on the NYSE to enhance information transparency and align with its strategic direction, with a long-term goal of expanding its investor base.
CEO Paul Yu stated: "2025 marked the company's first full year as a bitcoin mining enterprise, characterized by rapid execution and structural reshaping. We completed a comprehensive adjustment of our asset system and established a globally distributed mining network. Additionally, the company introduced a new management team, further strengthening our capabilities and competitive advantage in the digital asset and energy infrastructure space. The completion of the NYSE direct listing and USD pricing also signifies our transformation into a global AI infrastructure company."
"As we enter 2026, the company will continue to optimize its balance sheet structure and enhance operational efficiency and cost resilience through adjustments to the miner portfolio. At the same time, we are advancing our strategic transformation into an AI infrastructure provider. Leveraging EcoHash, we will utilize our capabilities in scalable computing power and energy networks to provide cost-effective AI inference solutions. The relevant site transformations and product development are progressing simultaneously, and the company is well-positioned to sustain its execution in the new phase."
The company's Chief Financial Officer, Michael Zhang, stated: "By 2025, the company is expected to achieve significant revenue growth through its scaled mining operations. Despite recording a net loss of $452.8 million from ongoing operations, mainly due to one-time transformation costs and market-driven fair value adjustments, the company, from a financial perspective, will reduce its leverage, optimize its Bitcoin reserve strategy and liquidity management, introduce new capital to strengthen its financial position, and seize investment opportunities in high-potential areas such as AI infrastructure while navigating market volatility."
The total revenue for the fourth quarter was $1.795 billion. Of this, the Bitcoin mining business contributed $1.724 billion in revenue, generating 1,718.3 Bitcoins during the quarter. Revenue from the international automobile trading business was $4.8 million.
The total operating costs and expenses for the fourth quarter amounted to $4.56 billion, primarily attributed to expenses related to the Bitcoin mining business, as well as impairment of mining machines and fair value losses on Bitcoin collateral receivables.
This includes:
· Cost of Revenue (excluding depreciation): $1.553 billion
· Cost of Revenue (depreciation): $38.1 million
· Operating Expenses: $9.9 million (including related-party expenses of $1.1 million)
· Mining Machine Impairment Loss: $81.4 million
· Fair Value Loss on Bitcoin Collateral Receivables: $171.4 million
The operating loss for the fourth quarter was $276.6 million, a significant increase from a loss of $0.7 million in the same period of 2024, primarily due to the downward trend in Bitcoin prices.
The net loss from ongoing operations was $285 million, compared to a net profit of $2.4 million in the same period last year.
The adjusted EBITDA was -$156.3 million, compared to $2.4 million in the same period last year.
The total revenue for the full year was $6.881 billion. Of this, the revenue from the Bitcoin mining business was $6.755 billion, with a total output of 6,594.6 Bitcoins for the year. Revenue from the international automobile trading business was $9.8 million.
The total annual operating costs and expenses amount to $1.1 billion.
Specifically, they include:
· Revenue Cost (excluding depreciation): $543.3 million
· Revenue Cost (depreciation): $116.6 million
· Operating Expenses: $28.9 million (including related-party expenses of $1.1 million)
· Miner Impairment Loss: $338.3 million
· Bitcoin Collateral Receivable Fair Value Change Loss: $96.5 million
The full-year operating loss is $437.1 million. The continuing operations net loss is $452.8 million, while in 2024, there was a net profit of $4.8 million.
The 2025 non-GAAP adjusted net profit is $24.5 million (compared to $5.7 million in 2024). This measure does not include share-based compensation expenses; refer to "Use of Non-GAAP Financial Measures" for details.
As of December 31, 2025, the company's key assets and liabilities are as follows:
· Cash and Cash Equivalents: $41.2 million
· Bitcoin Collateral Receivable (Non-current, related party): $663.0 million
· Miner Net Value: $248.7 million
· Long-Term Debt (related party): $557.6 million
In February 2026, the company sold 4,451 bitcoins and repaid a portion of related-party long-term debt to reduce financial leverage and optimize the asset-liability structure.
As per the stock repurchase plan disclosed on March 13, 2025, as of December 31, 2025, the company had repurchased a total of 890,155 shares of Class A common stock for approximately $1.2 million.

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