May 7th, 2025 – Dubai, UAE
In the wake of the largest hack in cryptocurrency history, Bybit has showcased remarkable resilience, transparency, and user trust. An independent report by Kaiko, a premier provider of institutional-grade crypto market data, highlights Bybit’s swift recovery, revealing that its liquidity rebounded to pre-incident levels within just 30 days—an achievement that sets it apart from industry counterparts facing similar challenges.
On February 21, 2025, Bybit fell victim to a coordinated cyberattack that resulted in unauthorized withdrawals totaling $1.5 billion. This incident sent shockwaves throughout the global cryptocurrency ecosystem; however, Bybit’s agile response and sturdy infrastructure helped maintain continuous trading. In the subsequent weeks, the platform’s liquidity, trading depth, and user confidence surged back with impressive speed.
A 30-Day Turnaround Through Innovative Market Structures
Kaiko’s analysis indicates that Bybit’s Bitcoin liquidity—assessed by the 1% market depth—achieved an average of $13 million per day by the end of Q1 2025, reinstating pre-hack levels. The restoration of liquidity occurred across all order book tiers, demonstrating significant institutional engagement.
A pivotal factor in this remarkable recovery was the launch of Retail Price Improvement (RPI) orders on February 20, just prior to the cyberattack. These orders, specially designed for manual traders through Bybit’s platform, were facilitated by institutional market makers to enhance pricing conditions. In the tumultuous days that followed the incident, RPI orders played a crucial role in stabilizing trades, tightening spreads, and safeguarding manual users from algorithmic exploitation.
Strengthening the Altcoin Market and Narrowing Spreads
The liquidity rebound was not restricted solely to Bitcoin; over 80% of pre-hack market depth for the top 30 altcoins regained stability by March. Spreads for major tokens, including high-volatility assets such as DOGE and XRP, significantly narrowed, signifying enhanced execution cost and revived confidence among market makers.
Moreover, bid-ask spread volatility—an essential indicator of market stress—decreased through March, reflecting greater order book stability and increased participation from liquidity providers.
Faster Volume Recovery Than Previous Crises
While general market sentiment exhibited caution amid macroeconomic challenges, Bybit’s trading volumes rebounded more rapidly than during comparable incidents like the 2016 Bitfinex hack or the 2023 Binance.US SEC case. Kaiko’s data noted a surge in hourly trading volume on Bybit, which briefly reached $1.2 billion right after the attack. Although volumes initially dipped in line with weekend patterns, a steady climb has since emerged, indicating strong user retention and growing trust in Bybit’s resilience.
Transparency as a Competitive Edge
A standout element from the Kaiko report is Bybit’s consistent transparency throughout the recovery journey. Unlike other platforms which have faced prolonged liquidity downturns during similar crises, Bybit’s proactive communication and market structure improvements helped restore user confidence and stabilize trading conditions more quickly than the industry standard.
As the cryptocurrency market matures, exchanges are increasingly evaluated not just for their performance during bullish trends, but also for how effectively they navigate adversities. Bybit’s rapid liquidity recovery and dedication to user-centric innovation establish a new benchmark for operational resilience in the sector.
#Bybit / #TheCryptoArk
About Bybit
Bybit is the world’s second-largest cryptocurrency exchange by trading volume, catering to over 60 million users globally. Founded in 2018, Bybit is committed to fostering an open, equitable ecosystem in the decentralized world, with a strong focus on Web3 innovations. By partnering with leading blockchain protocols, Bybit aims to provide robust infrastructure and drive on-chain advancements. Renowned for its secure custody solutions and intuitive user experience, Bybit is bridging the gap between traditional finance and decentralized finance, empowering builders, creators, and enthusiasts alike. For more information about Bybit, please visit Bybit.com.
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