Retail Participation Drops by 30% as Bybit CEO Seeks Next Narrative
Bybit CEO Ben Zhou has observed a significant drop in retail participation on his cryptocurrency derivatives exchange, attributing it to the loss of retail investors. According to Zhou, retail participation is down by about 30%. This decline has a direct impact on Bybit's core revenue source, trading fees.
Zhou points out that meme coins were the driving force behind the last cycle, and he believes that AI may become the next narrative pivot. He draws parallels between this phenomenon and past cycles in the crypto market, including the 2017 ICO boom, the 2020 DeFi Summer, the 2021 NFT boom, and the 2023-2024 meme coin market.
Zhou's prediction reflects the exchange's path dependence judgment on the unique funding flow pattern of 'narrative-driven retail funds' in the crypto market. He notes that retail investment decisions heavily rely on hot narratives and short-term profit effects, which can quickly amplify through social media and exchange traffic recommendation mechanisms.