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BitMEX\u2019s shutdown marks the end of one of crypto\u2019s earliest derivatives exchanges as analysts point to rising regulatory costs, market concentration and the shift toward licensed trading venues.<\/p>\n
The closure of crypto derivatives exchange BitMEX is prompting fresh questions about whether the industry is entering a new phase of consolidation, as analysts point to market-share concentration and rising regulatory costs squeezing smaller platforms.<\/p>\n
While BitMEX helped pioneer perpetual swaps that became a cornerstone of digital asset derivatives trading, its daily Bitcoin futures volume began declining around May 2021 and never recovered to its 2020 daily peak of between $1 billion and $5 billion, according to data from CryptoQuant.<\/p>\n
Restructuring adviser Roshan Dharia told Cointelegraph the exchange\u2019s demise reflects structural pressures facing mid-sized centralized exchanges, where liquidity has increasingly concentrated among the industry\u2019s largest players and regulatory compliance costs continue to rise. He said:<\/p>\n
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