Arkham Exchange is transitioning from a centralized exchange (CEX) model to a fully decentralized exchange (DEX).
This was confirmed by Arkham CEO Miguel Morel. The announcement came after initial reports from CoinDesk suggested the platform might shut down due to low trading volumes around $700,000 daily at the time, user adoption challenges, and issues like a bloated/slow mobile app launched in late 2025.
The exchange is not shutting down — it’s pivoting to decentralization. Morel emphasized that “the future of crypto trading is decentralized,” criticizing centralized platforms as “bloated and unresponsive.” Decentralized trading especially perpetual futures is seen as cheaper, faster, and offering users self-custody of assets.
This aligns with broader market trends: In 2025, DEX trading volumes particularly onchain derivatives surged significantly, with perpetual DEX volumes approaching $12 trillion and DEX/CEX ratios hitting record highs. No specific timeline for the full transition has been provided yet, and the platform will remain operational during the shift.
Arkham Exchange, launched by the blockchain analytics firm Arkham Intelligence backed by investors like Sam Altman, originally supported spot and perpetual trading but has struggled to compete with major CEXs. This move reflects a strategic adaptation amid a challenging (bearish) crypto market environment and growing preference for decentralized options.
A DEX model emphasizes self-custody, meaning users retain direct control of their funds via wallets rather than relying on the exchange’s custody. This reduces risks from hacks, freezes, or mismanagement common on CEXs past incidents like FTX.
Perpetual futures and spot trading would become “cheaper and faster” per Morel, with lower fees and no intermediaries. DEXs often face higher slippage in low-liquidity environments and require users to manage wallets/private keys, which can be a barrier for less experienced traders.
Existing Arkham users may need to migrate assets during the transition, introducing temporary friction if not handled seamlessly.
The move addresses low trading volumes around $640K-$700K daily in early 2026, user adoption struggles, and criticisms of the platform becoming “bloated and slow” especially after the late-2025 mobile app launch. By going DEX, Arkham leverages its core strength in on-chain analytics — integrating real-time intelligence directly into trading interfaces could differentiate it from competitors.
The perpetuals/derivatives market is highly competitive, with on-chain volumes surging to ~$12T in 2025 (DEX/CEX ratios hitting highs). Dominated players like Hyperliquid, Aster, and others capture most flow, so Arkham must bootstrap liquidity via incentives or integrations to avoid remaining a niche player.
Building and maintaining a DEX requires adopting or developing secure, scalable protocols likely on chains like Solana or Ethereum L2s for perps, focusing on decentralization rather than centralized listing speed or fiat on-ramps.
This validates the growing preference for DEXs, especially in derivatives, where on-chain options offer transparency, censorship resistance, and alignment with crypto’s ethos. It highlights difficulties for new CEX entrants — even backed by strong analytics like Arkham — in competing against giants like Binance, and Bybit without massive liquidity or unique edges.
Signals adaptation in a tough environment — Amid bearish market conditions (low overall volumes, “bear market jitters”), the pivot shows platforms evolving rather than folding, potentially inspiring similar shifts elsewhere.
Arkham’s analytics edge could carve a niche for “intelligent” DeFi trading, but success depends on execution in a crowded field. As the native token of Arkham Intelligence, ARKM could gain demand if integrated into the new DEX for governance, fee discounts, staking rewards, or protocol incentives.
This might boost its value long-term by tying it more directly to platform activity. Short-term price reactions could vary based on transition progress and market sentiment, but the pivot positions ARKM as more ecosystem-essential than before.
This is a bold adaptation rather than capitulation — aligning with the view that “the future of crypto trading is decentralized.” Success hinges on smooth execution, liquidity attraction, and leveraging Arkham’s data strengths.
