Crypto Exchanges Adapt to Retail Shift Towards Practical Use Cases

Retail investors have not abandoned the cryptocurrency space, but have shifted their approach towards more practical and sustainable use cases, according to Vugar Usi Zade, the chief operating officer of Bitget. This change is attributed to the lingering effects of the previous crypto market cycle and broader macroeconomic uncertainty, which has reduced retail investors' appetite for risk and disposable income.

Bitget is adapting to this shift by expanding into crypto payments and utility-driven services, such as Bitget Pay and stablecoin solutions. The fallout from the 2021 bull run and subsequent bear market has driven users to seek safer, more functional applications for their crypto holdings. Several exchanges, including Bitget, are tapping into the payment processing market, which brings crypto more towards retail use and everyday spending habits.

Usi Zade also highlighted the growing role of decentralized exchanges (DEXs), which now account for nearly 10% of the crypto derivatives market. These platforms attract users seeking early access to tokens not available on centralized exchanges. Bitget has emerged as one of the world’s largest crypto exchanges, with over 800 cryptocurrencies listed on its centralized exchange and support for trading across hundreds of DEXs and crosschain bridges through Bitget Onchain.

Usi Zade believes that the evolution of the crypto market marks the end of traditional boom-and-bust cycles. Instead of clear-cut bull or bear markets, the market will experience bull and bear episodes. Bitcoin, the industry’s biggest outlier, trades in its own free flow, influenced by macroeconomic forces and institutional investors attracted by exchange-traded funds (ETFs). This dynamic presents both advantages and risks for crypto investors.

Bitget is reinventing itself to adapt to these changes, focusing on regulations and Know Your Customer (KYC) procedures to become more of a bank-like organization. This shift reflects the broader trend in the crypto industry towards more sustainable and functional use cases, driven by the changing behavior of retail investors.