Bybit Bounces Back – Kaiko Validates Fast Liquidity Recovery Post $1.5 Billion Hack

By: bitcoin ethereum news|2025/05/08 06:30:02
0
Share
copy
May 7, 2025 – Dubai, United Arab Emirates A new independent report by Kaiko, a leading provider of institutional-grade crypto market data, reveals that Bybit’s liquidity rebounded to pre-incident levels within just 30 days – a feat unmatched by industry peers following similar crises. On February 21, 2025, Bybit was the target of a coordinated cyberattack resulting in $1.5 billion in unauthorized withdrawals. While the incident sent shockwaves through the global crypto ecosystem, Bybit’s swift response and robust infrastructure ensured trading remained uninterrupted. In the weeks that followed, the platform’s liquidity, trading depth and user confidence bounced back with remarkable speed. According to Kaiko’s analysis, Bybit’s Bitcoin liquidity – measured by the one-percent market depth – reached an average of $13 million per day by the end of Q1 2025, matching pre-hack levels. Liquidity recovered across all order book tiers, from 0.1% to eight percent of the mid-price, underscoring deep institutional participation. A key contributor to this recovery was the timely launch of RPI (Retail Price Improvement) orders on February 20 – just one day before the attack. These orders, exclusive to manual traders on Bybit’s interface and inaccessible via API, are placed by institutional market makers to enhance pricing conditions for retail participants. In the volatile days post-incident, RPI orders helped stabilize trading, tighten spreads and protect manual users from predatory algorithmic behavior. Liquidity recovery wasn’t limited to Bitcoin. Over 80% of pre-hack market depth for the top 30 altcoins by market cap was restored by March. Spreads across major tokens – including high-volatility assets like DOGE and XRP – tightened significantly, indicating improved execution costs and renewed market maker confidence. Bid-ask spread volatility – a key indicator of market stress – also declined throughout March, signaling improved order book stability and increased participation from liquidity providers. While broader market sentiment remained cautious amid macroeconomic uncertainty, Bybit’s trading volumes rebounded faster than after comparable shocks such as the 2016 Bitfinex hack or the 2023 Binance.US SEC case. Kaiko’s data shows that hourly trading volume on Bybit briefly spiked to $1.2 billion immediately following 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. One of the standout takeaways from the Kaiko report is Bybit’s transparency throughout the recovery process. While other platforms in similar situations have suffered prolonged liquidity deterioration, Bybit’s open communication and proactive market structure improvements helped it regain trust and stabilize conditions faster than the industry norm. As the crypto market matures, exchanges are increasingly measured not only by performance during booms but by how they respond to adversity. Bybit’s rapid liquidity rebound and commitment to user-centric innovation set a new benchmark for operational resilience in the industry. #Bybit / #TheCryptoArk Bybit is the world’s second-largest cryptocurrency exchange by trading volume, serving a global community of over 60 million users. Founded in 2018, Bybit is redefining openness in the decentralized world by creating a simpler, open and equal ecosystem for everyone. With a strong focus on Web 3.0, Bybit partners strategically with leading blockchain protocols to provide robust infrastructure and drive on-chain innovation. Renowned for its secure custody, diverse marketplaces, intuitive user experience and advanced blockchain tools, Bybit bridges the gap between TradFi and DeFi, empowering builders, creators and enthusiasts to unlock the full potential of Web 3.0. Discover the future of DeFi (decentralized finance) at Bybit.com. For more details about Bybit, please visit Bybit Press. For media inquiries, please contact here. For updates, please follow Bybit’s communities and social media. Discord | Facebook | Instagram | LinkedIn | Reddit | Telegram | TikTok | X | YouTube Tony Au, head of PR for Bybit Follow Us on X Facebook Telegram Source: https://dailyhodl.com/2025/05/07/bybit-bounces-back-kaiko-validates-fast-liquidity-recovery-post-1-5-billion-hack/

You may also like

On the eve of the Fed meeting, are traders starting to bet on a rate hike?

Middle East Battlefield, Distant Gunfire, and How to Rewrite the Fed's Rate Cut Script

Can AI Make $200 a Day with Weather Forecasting?

You may think you understand the weather in Shanghai, but it takes a system to uncover trading opportunities others can't see.

The Pentagon and the Market Have Simultaneously Sentenced Anthropic | Rewire News Evening Report

Anthropic's enterprise AI adoption is poised to surpass OpenAI by mid-2026.

Aster Deepens Strategic Partnership with WLFI, Launches USD1-Valued Perpetual Contract Market

The decentralized exchange platform Aster, strategically invested in by YZi Labs, has today announced the deepening of its strategic partnership with World Liberty Financial (WLFI). This collaboration has introduced a USD1-priced perpetual contract and new trading incentives, including WLFI token rewards and fee discounts for USD1 pairs, while allowing users to earn additional rewards by holding USD1.

Overnight, the crypto tycoons were severely played by Vanity Fair

A group of big shots who reached the peak through the cryptocurrency industry attempted to seek more recognition and support from the outside world through Vanity Fair magazine, but did not realize that this was a huge "trap," instead appearing in the public eye in a clownish manner.

Auto Earn Crypto Passive Income: Staking Rewards Up to 8% APR

Start earning crypto passive income with auto earn. Get up to 8% APR on BTC and higher yields on stablecoins. Compare staking rewards and maximize your returns today.

Popular coins

Latest Crypto News

Read more