Bybit Backs LITKEY Amid 90% Plunge: Betting on Long-Term Potential?

Bybit, the world's second-largest cryptocurrency exchange by trading volume, announced the listing of LITKEY for spot trading on July 6, 2023, marking a strategic move to expand its portfolio of digital assets and cater to growing demand for innovative blockchain projects. The listing, set to begin at 8:00 a.m. UTC, follows a rigorous evaluation by Bybit's listing committee, underscoring the exchange's commitment to quality and market relevance. This development comes amid a broader surge in crypto markets, with total capitalization rising by $33 billion in six hours, driven by gains in Bitcoin, Ethereum, and XRP.

The LITKEY token, associated with the Lit Protocol, has experienced significant volatility in recent weeks. As of November 5, 2025, LITKEY traded at $0.050163, with a 24-hour increase of 22.57% but a 90% decline over 30 days. A Binance Alpha airdrop contributed to short-term sell pressure, exacerbating the token's downward trend. Despite this, Bybit's decision to list LITKEY reflects confidence in its long-term potential, particularly its utility in decentralized key management and staking incentives.

The broader crypto market's performance has also influenced sentiment around the listing. XRP, for instance, surged 11% to reclaim the fourth-largest market cap, overtaking BNB, as renewed interest in payment protocols and regulatory clarity boosted investor confidence. Similarly, the Trump administration's trade deal with China, which includes reduced tariffs and resumed U.S. agricultural purchases, has injected optimism into global markets, potentially benefiting crypto assets tied to supply chain efficiencies.

Bybit's expansion strategy extends beyond LITKEY. The exchange recently launched a crypto payment solution in Sri Lanka, emphasizing cost advantages and flexibility for merchants and travelers. Additionally, Bybit EU’s Mazurka Zeng says adherence to MiCA regulations has strengthened its credibility in Europe, with the Vienna-based headquarters enabling compliance-driven innovation such as the Bybit Card, which allows users to spend crypto at millions of merchants.

Analysts note that new listings often bring heightened trading activity and volatility. The Bybit x Block Scholes report highlights a cautious derivatives market following a $6 billion liquidation in October 2025, with open interest flattening below $10 billion. While BTC options activity suggests ongoing hedging demand, WLFI tokens from the DeFi protocol World Liberty Financial have shown rebounding volatility post-airdrop. These dynamics underscore the need for traders to balance opportunities with risk management, particularly for high-beta assets like LITKEY.

Bybit's LITKEY listing aligns with its mission to democratize access to digital assets. The exchange encourages users to prepare by researching fundamentals, ensuring account liquidity, and familiarizing themselves with trading tools. With a market cap of $10.91 million and a circulating supply of 220 million tokens, LITKEY's inclusion on Bybit could amplify its visibility and adoption, especially as institutional inflows and regulatory clarity continue to shape the crypto landscape.