Dubai, UAE, May 7, 2025
class=”ql-align-justify”>In the aftermath of the largest hack in crypto history, Bybit has emerged as a case study in market resilience, transparency, and user trust.
Kaiko is a provider of high-quality institutional crypto data. A recent independent report reveals Bybit’s liquidity returned to its pre-incident level within 30 days, an achievement unmatched by other industry players following similar crises.
Bybit, the victim of a cyberattack that resulted in unauthorised withdrawals totaling $1.5 billion on February 21st 2025. Bybit’s rapid response and robust technology ensured that trading continued uninterrupted despite the shockwaves the incident caused in the crypto-ecosystem. The platform recovered quickly in the following weeks, with a remarkable increase in liquidity, depth of trading, and confidence among users.
Market Structure Innovation Leads a 30-Day Turnaround
Kaiko’s research shows that Bybit’s Bitcoin liquid–measured as 1% of the market–reach an average $13 million in a day at the end of the first quarter of 2025. This is the same level of liquidity before the hack. The recovery of liquidity was seen across the order book, between 0.1% and 8%, indicating a strong institutional involvement.
Retail Price Improvement Orders (RPI), which were launched on the 20th of February, just one day prior to the attacks, played a key role in this recovery. Institutional market makers place these orders exclusively for manual traders using Bybit interfaces and not accessible via API to improve pricing conditions for retailers. RPI orders were used to stabilize the market, reduce spreads and protect users against predatory algorithms in volatile post-incident days.
Altcoin Market strength and narrowing spreads
The recovery of liquidity wasn’t just limited to Bitcoin. By March, the market depth of top 30 altcoins ranked by market capital had recovered over 80%. The spreads on major assets, including high volatility assets such as DOGE andXRP, tightened dramatically. This indicates improved execution costs and renewed confidence among market makers.
The volatility of the bid-ask spread, which is a leading indicator for market stress, declined also throughout March. This indicates improved order book stabilization and an increase in liquidity provider participation.
Recover Volumes Faster than in Prior Crises
Bybit trading volume recovered faster after the Bitfinex hack of 2016 or Binance.US SEC’s 2023 case than similar shocks like the Bitfinex.US SEC.
Kaiko data indicates that the hourly volume of trading on Bybit spiked briefly to $1.2 billion after the incident. Although volumes dipped in line with weekend trends, they have since normalized and begun climbing steadily–highlighting strong user retention and a growing sense of trust in Bybit’s market resilience.
Transparency is a differentiator
The Kaiko report highlights Bybit’s transparent approach to the recovery. Bybit, unlike other platforms that have experienced prolonged and severe liquidity declines, has been able to stabilize the situation faster due to its open communication.
Exchanges’ performance is increasingly being measured by their ability to respond not just during times of boom, but also in the face of adversity. Bybit’s commitment to innovation and rapid recovery of liquidity set new standards for the crypto industry.
#Bybit / #TheCryptoArk
Bybit
Bybit, the second largest cryptocurrency exchange in terms of trading volume worldwide, serves a community of more than 60 million users. Bybit, founded in 2018, is changing the way openness works in a decentralized environment by creating an ecosystem that’s open and simple for all. Bybit focuses on Web3 and partners with the leading blockchain protocols in order to drive innovation on-chain. Bybit, known for its diverse marketplaces and intuitive user interface, bridges the gap that exists between TradFi (traditional finance) and DeFi. It empowers builders, creators and enthusiasts by unlocking the potential of Web3. Bybit.com is the home of the decentralized future.
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The post Bybit bounces back: Kaiko validates fast liquidity recovery after a $1.5B hack may be updated as new developments unfold.
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