After a tumultuous conclusion to 2025, characterized by heightened volatility and the impactful October 10 crypto crash, Hyperliquid (HYPE), one of the market’s largest decentralized exchanges (DEXs), faced significant challenges as it entered 2026. 

With less than two weeks remaining in January, market research firm GLC released an interesting report assessing Hyperliquid’s current standing and evaluating its recovery metrics.

Post-October 10 Downturn

The report highlights that Hyperliquid’s trading volume and open interest suffered a considerable decline following the liquidation event on October 10, marking the onset of a downtrend for the platform. 

Since that date, trading volume has decreased by 44.3%, dropping from $10.17 billion to $5.66 billion. Open interest has also experienced a decline of 35.7%, falling from $14.75 billion to $9.48 billion. 

However, there are signs of recovery. Notably, since December 1, 2025, trading volume on the platform has seen a slight decrease of 3.2%, while open interest has surged by 45.6%.

Year-to-date metrics reveal a more optimistic picture: trading volume has increased by 59.2%, rising from $3.56 billion to $5.66 billion, and open interest has grown by 24.7%, going from $7.60 billion to $9.48 billion. 

While open interest has started to recover since the October event, trading volume has not rebounded at the same rate. This disparity has caused the volume-to-open interest (OI) ratio to decline from 0.90 on December 1 to 0.60 as of mid-January, likely due to decreased market volatility, which has dampened trading activity.

Despite these challenges, there is a positive trend indicating that traders are beginning to open larger positions on Hyperliquid, and the recovery in volume on a year-to-date basis is promising. 

The report suggests that open interest is a more reliable indicator of trader confidence and long-term positioning, while trading volume tends to be influenced by broader market conditions. Although current metrics remain below pre-October 10 levels, the trend indicates that recovery is underway.

Will 2026 Mark A Surprising Resurgence For Hyperliquid?

The recent volume and open interest data are said to be bullish, with the 7-day average volume increasing by over 130% year-to-date, primarily driven by one active deployer, XYZ, which accounts for roughly 80% of that volume. The 7-day average open interest has also risen by more than 60%.

Moreover, Hyperliquid is regaining market share from centralized exchanges (CEXs) as seen in the chart below, with its open interest currently representing about 14.6% of Binance’s, gaining momentum against platforms like Bybit and OKX.

Another key factor that could further contribute to the platform’s recovery this year is the rollout of portfolio margin. Currently live on testnet, this feature will enable traders to borrow and lend against their collateral, unlocking numerous new use cases. 

Historical evidence from other exchanges, such as Bybit, suggests that introducing portfolio margin can be a significant growth catalyst, potentially translating to a substantial increase in trading volume for Hyperliquid.

Overall, core metrics are gradually improving, and several catalysts lie ahead, such as the growing adoption of equity perpetuals and the introduction of portfolio margin. GLC’s report asserts: 

…If improving market conditions are combined with the catalysts outlined above, and potentially another S3 season bringing in new traders, Hyperliquid will surprise the market once again.

At the time of writing, the platform’s HYPE token is trading at around $21.84. This represents a significant 9% retracement within the last 24 hours alone, placing the altcoin 63% below its all-time high of $59.30.

Featured image from OpenArt, chart from TradingView.com 

• Bybit will gradually scale back services for Japanese users from 2026 amid ongoing regulatory pressure.
• Japan’s strict licensing rules are forcing unregistered crypto exchanges to limit or exit the market.
• While pulling back in Japan, Bybit is expanding in the UK and Middle East under clearer frameworks.

Bybit is preparing to gradually scale back services for users based in Japan from 2026, marking a further shift in how global crypto exchanges navigate one of the world’s most tightly regulated digital asset markets.

The move follows months of regulatory pressure and earlier steps taken by the exchange to reduce its footprint in the country.

Bybit said the process will involve rolling account restrictions applied over time, rather than an immediate shutdown, as it aligns with Japan’s regulatory framework.

The development comes even as the exchange expands in other jurisdictions, underlining the uneven global regulatory landscape for crypto platforms.

Japan’s regulatory pressure

The phased restrictions will apply to users identified as Japanese residents, with Bybit implementing the measures on a rolling basis.

Users who believe they have been incorrectly classified have been asked to complete additional identity verification checks to resolve their status.

Bybit is not registered with the Financial Services Agency, which requires crypto exchanges serving Japanese residents to obtain local approval before offering services.

Japan’s regulatory regime has long been regarded as one of the strictest globally, shaped by past exchange failures and consumer protection concerns.

This framework has limited the ability of overseas platforms to operate freely in the country without a local licence.

Bybit’s decision to begin a structured withdrawal from 2026 reflects the growing difficulty for unregistered foreign exchanges to maintain access to Japanese users.

Earlier restrictions in Japan

The latest announcement builds on earlier actions taken by Bybit to curb its exposure to the Japanese market.

In October, the exchange halted new user registrations in Japan, citing ongoing discussions with regulators.

That decision signalled that continued full operations without registration were becoming increasingly unsustainable.

Regulatory scrutiny intensified in February, when Japan’s Financial Services Agency requested that app stores run by Apple and Google suspend downloads of five unregistered cryptocurrency exchanges.

Alongside Bybit, the list included MEXC Global, LBank Exchange, KuCoin, and Bitget. The move reinforced Japan’s stance that access to local users must be tightly controlled.

Industry figures have warned that this regulatory bottleneck is driving innovation elsewhere.

In July, Maksym Sakharov, co-founder and CEO of WeFi, said Japan’s strict oversight was pushing crypto development out of the country, as companies look for more flexible jurisdictions.

Despite the Japan pullback, Bybit remains one of the most active exchanges globally.

Rather than exiting heavily regulated markets altogether, Bybit has increasingly adopted jurisdiction-specific strategies, limiting certain services while expanding in regions with clearer or more accommodating frameworks.

Expansion beyond Japan

While scaling down in Japan, Bybit is simultaneously rebuilding its presence in other markets.

The exchange is reentering the UK after a two-year pause, launching a platform that offers spot trading and peer-to-peer services.

The UK return is structured through a promotions arrangement approved by Archax, rather than through direct UK registration.

Bybit has also strengthened its position in the Middle East.

Last month, it secured a Virtual Asset Platform Operator Licence from the United Arab Emirates’ Securities and Commodities Authority, eight months after receiving in-principle approval.

The licence allows the exchange to expand services in a region that has actively positioned itself as a hub for digital asset firms.

The post Bybit to gradually scale back Japan services from 2026 due to tight crypto regulations appeared first on CoinJournal.

• The exchange restarted access on Thursday, including spot trading across 100 currency pairs.
• FCA financial promotion rules introduced in October 2023 led several crypto firms to end UK operations.
• The UK government has said it intends to establish a crypto rulebook by 2027.

Bybit, the world’s second-largest cryptocurrency exchange by trading volume, says it has restarted services in the UK, nearly two years after tougher rules on the promotion and marketing of crypto products pushed firms to pull back.

The company, which says it has around 80 million users globally, relaunched UK access on Thursday with a set of products that includes spot trading across 100 currency pairs, reports CoinDesk.

The move comes as the Financial Conduct Authority continues to scrutinise how crypto services are advertised to British residents, while the UK government has signalled it wants a fuller crypto rulebook in place by 2027.

Why Bybit left and what changed

The FCA tightened its financial promotion regime for crypto advertising in October 2023, triggering a wave of operational changes across the industry and prompting several firms to end UK activity.

According to CoinDesk, Bybit said its return is built around meeting FCA financial promotion standards, with an emphasis on clearer communications and transparency for UK users.

The company is not licensed in the UK, but says it is operating within a framework designed to comply with the FCA’s requirements for promotions.

That framework matters because, under the rules, crypto marketing aimed at UK consumers must be approved by an authorised firm unless an exemption applies.

What UK users can access now

Bybit said UK customers can again use its services, including spot trading across 100 currency pairs, notes CoinDesk.

The exchange described the restart as a reopening of UK services rather than a limited pilot, positioning it as a return to the market after the regulatory shift.

Bybit’s policy team framed the UK as a market with a sophisticated financial ecosystem and a clearer regulatory direction, saying the exchange intends to introduce products tailored for UK users while prioritising transparency and compliance.

How Archax is enabling compliant crypto promotion

To support its UK activity, Bybit will operate and market its services via London-based crypto exchange Archax.

Archax holds a specific FCA permission that allows it to approve financial promotions, a route that can enable unauthorised firms to legally market and provide services to UK consumers.

Archax said it is supporting Bybit’s compliant access to the UK market and pointed to prior work helping other large exchanges, states CoinDesk,  including Coinbase and OKX, reach UK users without needing their own authorisation.

What the 2027 crypto rulebook signal means

Alongside the FCA’s stricter approach to promotions, the UK government has said it intends to establish a crypto rulebook by 2027.

That announcement has fuelled expectations of a more defined operating environment for exchanges, even as marketing standards remain a key gatekeeper for consumer-facing activity in the near term.

Industry watchers see the arrangement as another test case for how large global crypto platforms re-enter the UK without holding direct regulatory authorisation under evolving financial promotion oversight regimes globally.

The post Bybit returns to UK crypto market after 2 years appeared first on CoinJournal.

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