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The recent cyber hack witnessed by the leading cryptocurrency trading platform, Bybit, saw the exchange lose about $1.5 billion due to unauthorized withdrawals.
The attack on February 21, 2025, marks the largest hack in crypto history, sending shockwaves through the global crypto ecosystem.
Bybit Makes Wave With Speedy Rebound
While this unfortunate incident has led the exchange into distress, a recent report from institutional-grade crypto market data provider Kaiko shows that Bybit has made a shocking recovery in just about one month.
Underscoring Bybit’s prominence in market resilience, transparency, and user trust, its liquidity rebounded to pre-incident levels within just 30 days.
Notably, just weeks after the incident, the exchange bounced back with remarkable speed in its liquidity, trading depth, and user confidence, all thanks to its swift response and robust infrastructure that ensured trading remained uninterrupted.
Per Kaiko’s analysis, Bybit’s Bitcoin liquidity, which was measured by the 1% market depth, reached an average of $13 million per day by the end of Q1 2025, matching pre-hack levels.
The liquidity was recovered across all order book tiers, from 0.1% to 8% of the mid-price, underscoring deep institutional participation.
Bybit’s fast liquidity recovery can be largely attributed to the timely launch of Retail Price Improvement (RPI) orders on February 20. These orders helped stabilize trading, tighten spreads, and protect manual users from predatory algorithmic behavior.
While it was launched just one day before the attack, the orders, exclusive to manual traders on Bybit’s interface and inaccessible via API, were placed by institutional market makers to enhance pricing conditions for retail participants.
According to the report, Bybit’s liquidity recovery wasn’t limited to Bitcoin. Over 80% of the pre-hack market depth for the top 30 altcoins by market cap was restored by March.
While the 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 further revealed 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. This signal highlights strong user retention and a growing trust in Bybit’s market resilience.
Furthermore, Bybit has also maintained transparency throughout the recovery process. Unlike other platforms in similar situations that 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.
