Rapid Restoration of Bybit's Liquidity: Kaiko Confirms Quick Rebound After $1.5 Billion Hack Event
🌐 Bybit: A Phenomenal Bounce Back in the World of Crypto
📅 May 7th, 2025, Dubai - After the colossal crypto hack history that shook the global cryptoverse, Bybit emerges as a beacon of market resilience, transparency, and unshakable user trust. A remarkable report by Kaiko, a leading crypto market data powerhouse, unveils that Bybit's liquidity returned to pre-incident levels within a mind-blowing 30 days—an unparalleled feat among industry rivals following comparable catastrophes.
💥 February 21, 2025 - Bybit Under AttackBybit became the target of a coordinated cyber-onslaught, resulting in an eye-popping $1.5 billion in illicit withdrawals. These shockwaves sent tremors throughout the crypto world. Yet, Bybit's lightening-fast response and stout infrastructure ensured that trading proceeded uninterrupted. In the ensuing weeks, the platform's liquidity, trading depth, and user faith bounced back with astonishing alacrity.
🔍 Innovation at the Heart of Recovery
According to Kaiko's meticulous analysis, Bybit's Bitcoin liquidity—evaluated by the 1% market depth—averaged $13 million per day by the end of Q1 2025, neatly matching pre-hack levels. The liquidity returned across all order book tiers, from 0.1% to 8% of the mid-price, underlining the robust involvement of deep-pocketed institutions.
⌨️ Why the Speedy Recovery?
Kaiko credits the introduction of Retail Price Improvement (RPI) orders on February 20, a day before the attack, as the key catalyst in the rapid recovery. Exclusive only to manual traders on Bybit's interface and inaccessible via API, these orders facilitate tight spreads, shielding manual users from predatory algorithms in times of market turbulence.
📈 Altcoin Market Strength and Narrowing Spreads
Bybit's liquidity restoration didn't confine itself to Bitcoin. Over 80% of pre-hack market depth for the top 30 altcoins by market cap was restored by March. The spreads across major tokens, including volatile assets like DOGE and XRP, tightened significantly, reflecting improved execution costs and a renewed sense of confidence among market makers.
📉 Volumes Surge Quicker Than Crises Past
Although broader market sentiment remained wary amidst economic uncertainties, Bybit's trading volumes rebounded faster than after comparable shocks like the 2016 Bitfinex hack or the 2023 Binance.US SEC case. Kaiko's data reveals that hourly trading volume on Bybit briefly reached $1.2 billion immediately after the incident, with volumes subsequently normalizing and gradually climbing—a testament to strong user retention and burgeoning faith in Bybit's market resilience.
💬 Transparency at the Forefront
One of the standout findings of the Kaiko report was Bybit's unwavering transparency throughout the recovery process. Unlike other platforms that floundered amidst comparable crises due to prolonged liquidity erosion, Bybit's open communication and proactive market structure tweaks proved instrumental in regaining trust and stabilizing market conditions in record time.
As the crypto world matures, exchanges will increasingly be measured based on their accomplishments during downturns, not merely their performance during boom times. Bybit's rapid liquidity recovery and unwavering commitment to user-centric innovation establish a formidable benchmark for operational resilience within the industry.
🏆 Bybit: A New Standard for ResilienceFounded in 2018, Bybit is the second-largest cryptocurrency exchange by trading volume, catering to a global community of over 60 million users. Bybit is crafting a simpler, more open, and uniform ecosystem, forging powerful partnerships with leading blockchain protocols to deliver robust infrastructure and fuel on-chain innovation. Renowned for its secure custody, comprehensive marketplaces, user-friendly interface, and cutting-edge blockchain tools, Bybit bridges the gap between TradFi and DeFi, empowering builders, creators, and enthusiasts to realize the full potential of Web3. Journey into the future of decentralized finance at Bybit.com.
Sources:[1] White Paper
[2] Twitter Announcement
[3] Solid News
- Bybit's speedy recovery in the crypto market, following a $1.5 billion cyber-attack, underscores the exchange's resilience, transparency, and user trust.
- Kaiko's report revealed that Bybit's Bitcoin liquidity, measured by the 1% market depth, averaged $13 million per day in Q1 2025, echoing pre-hack levels.
- The introduction of Retail Price Improvement (RPI) orders, exclusive to manual traders on Bybit's interface, was credited by Kaiko as the key catalyst in the rapid recovery.
- Bybit's liquidity restoration wasn't confined to Bitcoin; over 80% of pre-hack market depth for the top 30 altcoins was restored by March.
- Spreads across major tokens like DOGE and XRP tightened significantly, reflecting improved execution costs and a renewed sense of confidence among market makers.
- Despite economic uncertainties, Bybit's trading volumes rebounded faster than after comparable shocks like the 2016 Bitfinex hack or the 2023 Binance.US SEC case.
- Bybit's unwavering transparency throughout the recovery process, and its proactive market structure tweaks, proved instrumental in regaining trust and stabilizing market conditions in record time.
