Author: Frank, PANews

During the crypto bear market cycle, the asset shortage has evolved into an industry-wide predicament. Liquidity is drying up, market activity has plummeted, and the market is facing not just a downturn, but a true test of survival.

The crypto market entered a period of sluggish cooling-off in the first quarter of 2026. TokenInsight's statistics show that the total trading volume of crypto exchanges in the first quarter of 2026 was approximately $17.9 trillion, a 32% decrease compared to the fourth quarter of 2025, with both spot and derivatives trading volumes hitting multi-quarter lows.

When trading volume is no longer the only growth narrative, what should exchanges rely on to retain traffic, funds, and trading demand? Huobi HTX may have provided an answer.

On April 17th, Huobi HTX exchange released its Q1 2026 report. As of the end of March 2026, Huobi HTX had accumulated over 59 million registered users, with its brand reaching over 53.55 million users in the quarter. The number of users increased by approximately 4 million compared to the end of 2025, representing a growth rate of approximately 7.3%.

Initial public offerings (IPOs) account for more than half of the total assets, with investors rushing to acquire potential assets during the bear market.

During bear market downturns, investors are often unwilling to continue betting on a rebound in older projects, preferring instead to allocate funds to new assets with higher potential returns. This is especially true as most mainstream assets continue to decline, and the crypto narrative has almost collectively fallen silent.

In the first quarter of 2026, Huobi HTX launched 39 new assets, with initial offerings accounting for 53.85%. In a quarter where mainstream assets did not perform strongly, this proportion reflects the platform's shift from passively following existing market trends to actively participating in the discovery of potential assets and the building of liquidity at an earlier stage.

Emotionally driven, lottery-like assets like MEME tokens remain one of the most popular areas for investors. Huobi HTX launched several MEME assets in Q1, including ELSA, Laozi, and Wo Ta Ma Lai Le. These tokens saw peak gains of 620%, 572.73%, and 411.81% respectively after their launch, generating significant wealth effects.

However, peak price increases do not equate to actual returns for users. MEME coins are highly dependent on market sentiment, leading to extremely volatile prices that often exhibit sharp rises and falls. Among the vast sea of MEME coins, Huobi HTX, with its rapid and accurate ability to identify potential assets, has become a bridge between user trust and exchange traffic. Ultimately, these newly listed assets have brought over $3 billion in spot trading volume to Huobi HTX, becoming a significant driving force for its spot trading volume.

Of course, besides MEME coin, the market remains enthusiastic about projects with potential for ecosystem development narratives. The strong performance of initial offerings such as BTW, BNKR, and RIVER in the first quarter also demonstrates Huobi HTX's ability in asset discovery. Among them, BTW saw a maximum increase of 3,899.2% after its launch, BNKR reached a maximum of 3,403.6%, and RIVER reached a maximum increase of 2,865.3%.

Focusing solely on trending topics can easily turn into an emotional gamble. Focusing solely on fundamental assets may fail to keep pace with market trends. Truly effective asset discovery capabilities often lie precisely in this balance: capturing the most sensitive fluctuations in market sentiment while also filtering out assets with a longer-term narrative for users.

In a bear market, it's not just about returns, but also about the trust between investors.

The crypto industry has long been a prime target for hackers, and security concerns have never ceased. Especially with the rapid proliferation of AI technology, the efficiency and stealth of hacking attacks have significantly increased, posing even greater challenges to the industry's security. According to Hacken's Q1 report, total Web3 losses amounted to $482.6 million, while the recent Kelp DAO vulnerability resulted in a single loss of nearly $300 million. Even more worrying is that the losses extend far beyond financial matters, severely eroding investor confidence.

The transparency of exchanges and the stability of fund channels are no longer just compliance or brand issues; they are fundamental infrastructure that directly affects user retention.

In response to industry security concerns, Huobi HTX has demonstrated transparency through concrete actions. Huobi HTX's Merkle Tree Proof of Reserves shows that as of April 1, 2026, the platform's major asset reserve ratios remain above 100%. Specifically, the BTC reserve ratio is 101%, with user assets at 21,314 BTC; the ETH reserve ratio is 100%, with user assets at 117,175 ETH; the TRX reserve ratio is 108%, with user assets at 9,186,362,462 TRX; and the USDs reserve ratio is 104%. Huobi HTX has released proof of reserves reports for 42 consecutive months, allaying user concerns with an absolute adequacy ratio exceeding 100%.

For users, when the market is hot, the potential for profit often masks some of the platform's risks. However, when the market cools down, investors become more selective. When the market lacks certain returns, the ability to demonstrate asset coverage and reduce uncertainty in deposits and withdrawals becomes a crucial reason for platforms to attract and retain funds.

In the crucial OTC segment for absorbing capital inflows, Huobi HTX appears to be attempting to establish similar certainty. Public information shows that its C2C selection platform, which boasts "0 freezes + 100% full compensation," recently celebrated its first anniversary. Based on actual operational data over the past year, this section has maintained a record of zero frozen cards. It's worth noting the "7x24-hour manual intervention at the minute level" risk control mechanism behind it. This asset-heavy model, to some extent, raises the security threshold of the current C2C sector. Objectively speaking, the smoothness of deposit and withdrawal channels is also a crucial foundation for large, long-term investments seeking safe havens.

As competition among exchanges enters a period of consolidation, defensive capabilities themselves become a form of offensive capability. A safe, transparent, and stable deposit and withdrawal experience, while lacking the allure of high returns, may be the real reason why large funds are willing to remain long-term. For trading platforms, the most effective way to retain funds is not necessarily through the highest returns, but rather through the foundation upon which users remain confident even in extreme market conditions.

From cryptocurrency prices to oil prices, moving closer to macro trading terminals.

As the window of opportunity for crypto gains gradually closes, investors are shifting their focus from crypto assets to global asset allocation. This is especially true given that Bitcoin has underperformed assets such as gold, silver, crude oil, and tech stocks, and the altcoin season has almost vanished.

More and more CEXs are turning their attention to TradeFi products, which are becoming a new tool for investors to hedge risks and supplement returns during bear markets.

The report shows that in the first quarter of 2026, Huobi HTX added more than 22 assets to its traditional financial contract zone, covering gold, silver, crude oil, US stocks and major indices, bringing the total number of trading pairs on the platform to more than 276.

Previously, centralized exchanges (CEXs) primarily served cryptocurrency trading. Users wishing to trade gold, crude oil, or US stock indices often had to leave their cryptocurrency trading platforms and enter brokerage firms or CFD platforms, navigating complex compliance verification and account opening processes. With mainstream CEXs now fully breaking down asset barriers, cryptocurrency users can seamlessly trade both cryptocurrency and TradeFi assets using a single account. This one-stop experience significantly reduces switching costs, allowing users to flexibly switch between Bitcoin and traditional assets 24/7, enabling risk hedging and cross-asset allocation.

This transformation has not only greatly improved user retention and transaction frequency, but also transformed crypto exchanges from mere liquidity venues within the cryptocurrency community into more than just 24/7 macro trading terminals.

If traditional financial contracts expand the "breadth" of users' transactions, then Earn products address the "length" of capital retention. In a bear market, users' preference for certain opportunities increases significantly; they are more willing to allocate funds in a reservoir that combines asset hedging with low-risk returns.

According to Huobi HTX's Q1 report, the SmartEarn product achieved a maximum annualized return of 7.21% and an average quarterly return of 2.68% in Q1 2026. The VIP flexible deposit product for Prime 5+ users offers an annualized return of up to 9% USDT, with a maximum of 100,000 USDT per user.

In addition, the report also mentioned that Huobi HTX has opened up a tiered high-interest channel for hedging funds, with the highest annualized yield of USDT flexible deposit reaching 10%, and the highest annualized yield for the compliant stablecoin USD1 reaching 15%; the subscription amount for USDe and USAT flexible deposit products and related activities exceeded US$110 million; and the subscription amount for the six new coin Earn activities exceeded US$10 million.

From this perspective, the role of Earn products is not just to provide returns, but to transform users from "staying on the platform during trading" to "staying on the platform between trading sessions." When an exchange simultaneously offers spot trading, futures trading, stablecoin flexible deposits, structured activities, and new coin subscriptions, the path of user funds within the platform is lengthened, making it easier for the platform to form a cycle of trading, returns, and re-trading.

The changes at Huobi HTX in the first quarter were not just about "adding more trading pairs" or "offering higher returns," but rather an attempt to integrate crypto trading, macro assets, and idle funds management into a single account system. This suggests that the next stage of competition among CEXs may no longer be about who can capture a single market trend, but rather about who can provide a more comprehensive fund-carrying capacity across different user states of trading, observation, and risk aversion.

Continuous product innovation, leveraging robust infrastructure to overcome economic cycles.

Beyond simply attracting new users and accumulating funds, extending the user journey is even more important. In the first quarter, Huobi HTX continued to optimize the user experience through user-centric technology and product innovation, meeting diverse needs across different market cycles.

The report shows that after the launch of Huobi HTX Copy Trading 4.0 and Smart Copy, copy trading volume increased by 50% in the first quarter of 2026, the number of copy trading users doubled, and the scale of forced liquidations decreased by 61%. This means that the platform is not just providing trading tools, but is lowering the threshold for new users to enter derivatives trading through strategy replication, risk control optimization, and user segmentation.

The value of copy trading products lies in packaging a portion of professional trading skills into a replicable path. For ordinary users, the most difficult aspect of derivatives trading is not clicking buy or sell, but rather position management, stop-loss discipline, and market judgment. Copy trading mechanisms cannot eliminate the risk of loss, but they can shift trading behavior from completely self-decision-making to a semi-automated process that references professional traders and system rules. Therefore, it has become an important strategy for many retail investors when market trends are unclear.

Meanwhile, Huobi HTX launched its AI assistant Beta version in the first quarter, supporting market analysis and personalized Earn recommendations; the community posting area added topics and bullish/bearish sentiment indicators; and the platform also launched the Huobi HTX Private membership benefits system and a desktop client. These features have gradually transformed the platform from a trading portal into a comprehensive terminal for information, decision-making, execution, and asset management.

These actions suggest that Huobi HTX wasn't simply focusing on trading volume in the first quarter, but rather attempting to integrate asset discovery, trade execution, profit sharing, community interaction, and AI tools into a unified user journey. The more an exchange resembles a comprehensive terminal, the higher the cost for users to churn; conversely, the platform also faces higher demands for product experience, risk control, and transparency.

When market conditions don't automatically drive user growth, exchanges must create more reasons to retain users. Huobi HTX demonstrates how, in a sluggish market, an exchange can transform from a simple liquidity provider into an opportunity discovery platform.

From this perspective, Huobi HTX is attempting to evolve from a single trading platform into a comprehensive financial terminal integrating asset discovery, macro trading, fund management, and intelligent tools. The real competition among CEXs is no longer just about trading volume rankings during a bull market, but rather the platform's ability to consistently provide verifiable product capabilities across different market environments.

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