Bybit CEO says crypto retail participation may have fallen 30%

Bybit CEO Ben Zhou thinks retail crypto traders have gone quiet, and the numbers back him up. Zhou estimates that retail participation across the crypto market is roughly 30% below previous peak levels, a gap he attributes to a market that’s simply run out of fresh narratives to chase.

The timing tracks. Centralized spot trading volumes in mid-2026 sit approximately 67% lower than the highs reached in October 2025.

The retail retreat in context

A 30% decline in retail participation doesn’t just mean fewer people buying Bitcoin on their phones. It means lower volumes, thinner order books, and reduced fee revenue for every exchange in the ecosystem.

The phenomenon isn’t unique to Bybit. Trading softness has reportedly hit exchanges across the board, suggesting this is an industry-wide dynamic rather than a platform-specific issue.

Bybit’s own rollercoaster

In early 2025, the exchange suffered a hack that resulted in losses exceeding $1.5 billion. Bybit didn’t fold. The exchange clawed its way back, recovering market share from lows near 4% to somewhere in the 7-9.5% range. Part of that recovery came through tactical product launches, including Retail Price Improvement orders, a tool designed to give retail traders better execution prices.

The platform now serves over 80 million users across 181 countries.

Pivoting toward institutions and AI

Rather than waiting for retail traders to come back on their own, Bybit is hedging its bets. The exchange is making a deliberate push toward institutional clients, diversifying into regulated products and tokenization services.

On the regulatory front, Bybit is pursuing EMI and MiFID licenses in Europe. MiFID compliance opens doors to institutional capital that won’t touch unregulated platforms, and EMI licensing enables electronic money services across the EU.

The technology side is evolving too. Bybit launched AI-driven features in September 2026, including Bybit AI, which provides conversational support for traders.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.