Following the unexpected closures of crypto exchanges BitMEX and BitMart, Binance has extended its lead as the digital asset trading avenue with the deepest Bitcoin (BTC) liquidity in the industry.
Binance gains as BitMEX, BitMarket exit market
According to exchange data received on Monday, the cryptocurrency exchange industry is entering a new phase of consolidation. Within the past week, both BitMEX and BitMart announced plans to shutter their business.
While BitMEX said the decision to shut down operations was taken following a “strategic review” of its business position and the state of the wider crypto market, BitMart’s decision to cease operations was due to the prevailing “operating conditions, market environment, and future strategic direction.”
For years, the crypto industry has supported hundreds of different crypto exchanges competing for liquidity. However, in 2026, due to a combination of various factors – such as stricter regulations, increasing compliance costs, and rising institutional participation – it has become challenging for smaller exchanges to survive, let alone thrive.
Gradually, capital is getting concentrated among a handful of big-name exchanges like Binance, and Coinbase. The following Binance Exchange Reserve chart further confirms this structural change.
After declining earlier in 2026, Binance’s BTC reserves have surged once again, and remain at high levels. It shows that liquidity continues to migrate toward the world’s largest exchange, rather than being evenly distributed across the industry.
This trend should not be seen as increased selling pressure, because modern exchange reserves also play an important role in exchange-traded fund arbitrage, and market making activities.
The closure of BitMEX and BitMart is not an isolated event. Rather, it is a part of a broader industry consolidation, and is likely to precede a phase where the digital assets market will be dominated by a few, transparent exchanges that are capable of meeting institutional demand.
What’s happening with exchanges?
BitMEX and BitMart shutting down isn’t all that surprising, since BTC volume shifts to over-the-counter trading venues has been increasing at a rapid pace. As of July 13, 91 percent of BTC trading volume has moved off exchanges.
There’s further evidence of crypto exchange consolidation, as on June 25, Japan-based SBI Holdings announced plans to acquire crypto exchange Bitbank for $289 million. In the same vein, on May 21, crypto exchange Blockchain.com filed for a public listing in the U.S.
