Haciyev Reşit 
Arkham Intelligence, a well-known player in on-chain data analytics, failed to achieve the targeted growth and user momentum with its crypto trading platform, Arkham Exchange. According to sources close to the matter, the company decided to shut down the crypto trading platform due to insufficient volume and liquidity levels. Although Arkham has not yet released an official statement regarding the closure, low trading volumes on the platform, limited user activity, and intense competition among exchanges are cited as the main reasons. This development highlights once again how even a data-driven, strong brand can struggle to achieve sustainable success in the crypto exchange space.
Why Was Arkham Exchange Established?
Arkham Intelligence had positioned itself as a company providing data intelligence solutions, labeling known wallet addresses, tracking on-chain fund flows, and interpreting complex blockchain data. Toward the end of 2024, the company aimed to leverage this robust data infrastructure on the trading side by launching a crypto derivatives exchange. The goal was to combine advanced data analytics with the trading experience to create an innovative platform capable of competing with industry giants like Binance for retail investors.
In line with this strategy, Arkham Exchange expanded its operations in early 2025 by offering spot crypto trading in several U.S. states. The company also launched a mobile trading app in December to increase user accessibility. However, despite all these product expansions and technical infrastructure, trading volumes and user activity on the platform remained far below expectations. This underscores that in a highly competitive exchange market, technology and data advantages alone are insufficient.
Trading Volumes Lag Behind Major Exchanges
Market data clearly illustrate why Arkham Exchange struggled. According to CoinGecko:
- Binance’s daily trading volume: approximately $9 billion
- Coinbase’s daily trading volume: approximately $2 billion
- Arkham Exchange’s last 24-hour volume: under $620,000
This gap highlights the platform’s difficulty in building sustainable liquidity and a stable user base.
Strong Backers, But Limited Interest
Arkham Intelligence stood out as one of the most notable ventures in the industry in terms of investor profile. Its backers included high-profile names and funds such as Sam Altman, Draper Associates, Binance Labs, and Bedrock. This investor network provided Arkham with significant financial and strategic support. The company also launched its native token, ARKM, which was trading around $0.12 at the time of writing.
Despite this strong investor backing, brand recognition, and token ecosystem, the exchange failed to achieve the expected user growth and trading volumes. This demonstrates that success in the crypto exchange space depends not only on capital and recognition but also on liquidity depth, user habits, and aggressive competitive strategies.
Evaluation
Arkham Intelligence’s decision to close its crypto trading platform underscores that technology and brand strength alone are not enough in the highly competitive exchange sector. Liquidity, user behavior, and scalable trading volume remain the primary determinants of success. Going forward, Arkham is expected to refocus on its core business of on-chain data analytics.
Also, you can freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.