Publicly listed cryptocurrency exchanges face significant headwinds heading into Q1. Channel data indicates trading volume has contracted nearly 20% year-to-date, a concerning signal for platforms dependent on trading activity. The squeeze extends beyond volume—profit margins are simultaneously compressing from multiple directions. Trading fee pressure is mounting as competition intensifies, while operational costs continue climbing. Adding to the challenge: decentralized exchange platforms are fragmenting order flow that traditionally concentrated on centralized platforms. This multi-pronged pressure—lower volumes, tighter margins, elevated costs, and DEX fragmentation—creates a challenging earnings environment for established players in the sector.