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    3. How Have America's Secondary Crypto Exchanges Fared After Six Months?

    How Have America's Secondary Crypto Exchanges Fared After Six Months?

    By: foresightnews.pro|2026/08/17 09:41:03
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    Market share is being continuously squeezed.


    Written by: Eric, Foresight News


    As 2026 reaches its midpoint, the crypto market has not seen the rebound many anticipated. Bitcoin has dropped over 30% in the first half of the year, briefly falling below $60,000, and the industry's spot trading volume has shrunk by more than 20% for two consecutive quarters. The much-anticipated CLARITY Act has stalled in the Senate, and expectations for regulatory easing have been forced to delay.


    Coinbase has illustrated this chill with a report showing a loss of over $750 million in the first half of the year. Even as the leading cryptocurrency exchange in the U.S., its situation is dire, and secondary exchanges are faring even worse. According to recently disclosed Q2 financial reports, while some secondary exchanges have seen performance growth, their market share continues to be compressed.


    Gemini: Surviving on Founders' Lifeblood


    Let’s start with the one in the worst shape.


    Gemini reported total revenue of $45.5 million in Q2, a 37% year-over-year increase, but exchange revenue fell 38% year-over-year to just $12.5 million, with spot trading volume shrinking from $11.3 billion a year ago to $3.8 billion, a 66% decline. Revenue growth relied entirely on side businesses such as credit cards, staking, and OTC, with credit card revenue reaching $16.2 million, a 231% increase year-over-year.


    Gemini posted a net loss of $107.7 million in Q2, accumulating a loss of $217 million in the first half of the year. Platform assets dropped from $18.2 billion a year ago to $8.4 billion. Compounding the issue, the credit card business faced setbacks, with identity fraud incidents discovered in Q1 continuing to escalate in Q2, leading to a provision for trading losses of $20.1 million for the quarter.


    The contraction came swiftly and harshly. On February 5, Gemini announced its exit from the UK, EU, and Australian markets, effectively abandoning years of overseas operations. The workforce was cut by 40% from the peak in Q3 2025, leaving only 402 employees by the end of the quarter, and marketing expenses were slashed by 45% year-over-year. In May, the Winklevoss brothers injected $100 million into the company at $14 per share through their fund. While this founder premium increase sounds like a vote of confidence, the market reads the signal as: the company can no longer raise funds externally. This lifeline, paid in Bitcoin, later faced a price drop, leading to an impairment on the books, dragging the adjusted EBITDA for Q2 down to negative $74 million, worse than Q1.


    Stock prices are the most honest indicators. Gemini went public at $28 in September last year, peaking at $45.89 on its first day, but has since dropped over 88% from that high, with a 56% decline this year. Citigroup cut its target price to $4 in April, maintaining a sell rating.


    Bullish: Reports Held Hostage by Bitcoin


    Bullish's situation is a bit more complex. Besides the exchange, this company also owns CoinDesk media, index licensing, and the Consensus conference, resulting in a relatively diversified revenue structure.


    Bullish reported adjusted revenue of $92.6 million in Q2, a 62% year-over-year increase, with subscription and service revenue hitting a record $62.7 million, with Morgan Stanley and Grayscale using CoinDesk's indices for their products. The adjusted net profit for Q2 was $14.3 million, marking a turnaround from losses. Looking at these numbers, Bullish appears to be the most respectable among the secondary players.


    However, the IFRS-compliant report tells a different story. The company reported a net loss of $280 million in Q2, primarily due to the Bitcoin it holds in its treasury, which incurred a fair value impairment of $245 million in just Q2. Digital asset sales fell 44% year-over-year, indicating that institutional trading is also contracting.


    CEO Tom Farley’s solution is a complete pivot. In May, Bullish announced at the Consensus Miami conference the acquisition of securities registration and transfer agent Equiniti for approximately $4.2 billion, expected to close in early 2027, aiming to piece together the entire chain of tokenized securities from issuance to trading and tracking. On August 12, the company launched its own tokenized stock trading and received approval from Gibraltar's regulatory authority.


    The story is a hot one, but the capital markets are not buying it right now. Bullish went public at $37 last August, closing at $70 on its first day, but its stock price now fluctuates between $23 and $27, over 30% below its IPO price, with a decline of about 35% this year. Zacks issued a sell rating following the earnings report.


    eToro and Bakkt Have Half-Given Up on Crypto Trading


    eToro delivered a solid report: a net profit of $229 million in Q2, a 9% year-over-year increase, with adjusted EBITDA of $78 million and a profit margin of 34%, holding $1.2 billion in cash and repurchasing $87 million in stock.


    However, this financial trading platform, known for its cryptocurrency trading, is gradually returning to its roots. eToro's net trading contribution from crypto in Q2 was only $11 million, including a $2 million impairment on company-held tokens, while traditional asset classes like stocks, commodities, and forex contributed $142 million, a 25% year-over-year increase. In fact, in Q1, eToro's commodity trading accounted for 60% of commission revenue, with trading volume nearly quadrupling year-over-year.


    The capital markets have also treated eToro relatively fairly. Its stock price has risen about 17.6% this year, outperforming the S&P 500. TD Cowen lowered its target price from $55 to $35 after the earnings report. In July, eToro announced the acquisition of broker TradeZero for up to $230 million, continuing its shift towards U.S. retail brokerage.


    eToro's significance lies in its demonstration that the survival path for secondary players is not to improve their exchanges but to stop being exchanges altogether.


    Bakkt sold its loyalty and trust business in 2025, going all-in on crypto infrastructure and stablecoin payments, completing the acquisition of DTR in April, telling a B2B story centered on regulatory licenses and stablecoin settlements.


    Bakkt's Q2 revenue was $170.1 million, a staggering 70% year-over-year drop. This $170.1 million in revenue corresponds to $169.3 million in costs, leaving almost no gross profit. In the first half of the year, Bakkt handled only $410 million in total cryptocurrency trading volume, while management maintained its full-year guidance of $2.5 billion, meaning it needs to achieve five times the volume in the second half of the year.


    If eToro provided the right answer, Bakkt is the complete opposite. The planned new business currently shows no signs of progress, and the cryptocurrency trading business, which has the highest proportion, has nearly hit rock bottom.


    -- Price

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    --
    --

    Leading Exchanges Continue to Capture Market Share


    Coinbase also faced a tough first half. Q1 revenue was $1.41 billion, a 31% year-over-year decline, with a net loss of $394 million; Q2 revenue dropped to $1.2 billion, with another loss of $360 million, falling short of Wall Street expectations for three consecutive quarters. In May, Coinbase announced it would lay off 700 employees, accounting for 14% of its total workforce.


    However, two numbers are worth noting. In Q1, Coinbase's global crypto trading volume share reached a historic high of 8.6%; in Q2, this figure rose to 10.3%, increasing for three consecutive quarters. While the overall market shrinks, Coinbase's share increases, indicating that the cost of contraction is disproportionately borne by secondary players. Gemini's spot volume dropped 66%, Bullish's digital asset sales fell 44%, while Coinbase's trading revenue decline was significantly less than the industry average.


    The phenomenon of resources concentrating at the top is becoming increasingly evident. Coinbase's adjusted EBITDA in Q2 was still $208 million, positive for 14 consecutive quarters, with stablecoin revenue of $292 million in a single quarter, predicting an annualized revenue of $100 million in less than six months since launching its prediction market. In contrast, Gemini's prediction market revenue in Q2 was only $500,000. In a bear market, scale itself is a moat, with liquidity, brand, and compliance cost dilution all concentrating at the top.


    Conclusion


    Putting together the four financial reports, the survival landscape for America's secondary exchanges in the first half of the year is quite clear. Trading volume is concentrating on Coinbase, with their core revenue collapsing at a rate of 40% to 70%; the direction of transformation is remarkably consistent, with credit cards, prediction markets, stock trading, tokenized securities, and stablecoin payments being pursued, doing everything except relying on spot trading fees.


    eToro has proven that diversification can sustain survival, Bullish is betting on a tokenized future that won’t materialize until 2027, Gemini is retreating to the U.S. relying on the founders' lifeblood, and Bakkt is using a 70% revenue decline to support the viability of its stablecoin business. If the crypto market does not warm up in the second half of the year, we may continue to see various numbers decline.


    For secondary exchanges, the challenge in 2026 has never been growth, but survival.

    This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.

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    Contents

    Gemini: Surviving on Founders' Lifeblood
    Bullish: Reports Held Hostage by Bitcoin
    eToro and Bakkt Have Half-Given Up on Crypto Trading
    just
    Leading Exchanges Continue to Capture Market Share
    Conclusion

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