In the wake of the largest crypto hack in history, Bybit has emerged as a model of market resilience and transparency, recovering with a speed and strength unmatched by its peers. A new independent report by Kaiko, a prominent provider of institutional-grade crypto market data, highlights Bybit’s rapid return to pre-attack liquidity levels—just 30 days after suffering a $1.5 billion breach.
On February 21, 2025, Bybit endured a coordinated cyberattack that led to massive unauthorized withdrawals, sending shockwaves through the global digital asset market. Despite the scale of the breach, Bybit’s operations continued uninterrupted, with the exchange leveraging its robust infrastructure and decisive response to maintain user trust.
Liquidity Rebounds Within a Month
According to Kaiko’s data, Bybit’s Bitcoin liquidity—measured by 1% market depth—reached an average of $13 million per day by the end of Q1 2025, fully rebounding to pre-hack levels. Liquidity was restored across all order book tiers, signaling deep institutional re-engagement and restored confidence.
The exchange’s swift recovery was partly driven by the launch of Retail Price Improvement (RPI) orders on February 20, just one day before the attack. These manually-placed orders—available only through Bybit’s trading interface and not through APIs—are designed to benefit retail traders by improving execution and shielding them from predatory high-frequency trading. In the volatile aftermath of the breach, RPI orders helped narrow spreads, stabilize order books, and protect retail participants.
Altcoins and Spreads Show Market-Wide Recovery
The resurgence extended beyond Bitcoin. Liquidity for the top 30 altcoins by market capitalization recovered to over 80% of pre-incident levels by March. Even in traditionally volatile markets, such as those for DOGE and XRP, spreads tightened significantly, pointing to reduced execution costs and increased confidence among market makers.
Bid-ask spread volatility—a common measure of market stress—declined throughout March, reflecting improved stability and renewed engagement from liquidity providers.
Faster Volume Recovery Than in Past Crises
Compared to previous industry disruptions—such as the 2016 Bitfinex hack or the 2023 Binance.US SEC lawsuit—Bybit’s volume recovery was notably swift. Kaiko’s analysis shows hourly trading volume on Bybit briefly spiked to $1.2 billion immediately following the hack. Although volumes dipped shortly thereafter due to typical weekend slowdowns, they have since steadily risen, underscoring sustained user engagement and resilience.
Transparency as a Competitive Advantage
Kaiko’s report emphasizes that Bybit’s transparency throughout the crisis played a pivotal role in its swift recovery. In contrast to other exchanges that suffered prolonged market fallout, Bybit’s open communication, user-focused innovations, and prompt action were critical in rebuilding trust and liquidity.
As the cryptocurrency sector matures, exchanges are being evaluated not just by performance during bull runs, but by their response to crises. Bybit’s ability to restore liquidity, tighten spreads, and maintain market confidence in the face of extreme adversity is now being held up as a new standard for operational excellence in the industry.
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