Rapid Liquidity Recovery Confirmed: Kaiko Affirms Quick Market Rebound Following $1.5B Bybit Hack

The Scene: Bybit Triumphs

Digging into Dubai's Sands, May 7th, 2025, The News Grapevine

Following the colossal crypto breach of $1.5 billion in early 2025, Bybit stands tall as a beacon of resilience, transparency, and user trust. A groundbreaking independent report by Kaiko – a prestigious data provider for institutional-grade crypto markets – unveils a remarkable revival of Bybit's liquidity to pre-crisis levels within a mere thirty days, a record-breaking achievement unparalleled in the industry.

In the wake of the cyberattack on February 21st, 2025, Bybit faced an avalanche of unauthorized withdrawals. Despite the shockwaves sweeping across the global crypto landscape, Bybit demonstrated rock-solid resilience, ensuring seamless trading continuity. The following weeks witnessed an astonishing acceleration in Bybit's liquidity, trading depth, and user confidence.

A Whirlwind of Innovation and Reinforcement

According to the Kaiko examination, Bybit's Bitcoin liquidity clocked an average of $13 million per day by the end of the first quarter, mirroring pre-breach levels. Liquidity recovery ran deep across the full spectrum of order book tiers, from 0.1% to 8% of the mid-price, signaling robust institutional participation.

The catalyst for this comeback was the timely debut of Retail Price Improvement (RPI) orders on February 20th, just a day before the hack. Reservoir for these orders is exclusive to manual traders using the Bybit interface and are off-limits for API users. These orders, initiated by institutional market makers, enhance trading conditions for retail participants by stabilizing the market, tightening spreads, and thwarting predatory algorithmic practices in times of volatility.

Cryptoverse Strength and Spread Narrowing

Restoration of liquidity was not confined to Bitcoin. Over 80% of pre-pandemonium market depth for the top 30 cryptocurrencies by market capitalization had been refurbished by March. Spreads for major tokens, comprising volatile assets like DOGE and XRP, significantly narrowed, implying reduced execution costs and renewed market maker verve.

Bid-ask spread volatility, a significant indicator of market stress, also deteriorated markedly throughout March, indicating enhanced order book stability and escalating liquidity provider participation.

Volume Upswing Swifter Than Previous Catastrophes

While the pounding of macroeconomic auras persisted, the Bybit trading volume recuperation surpassed earlier crises such as the 2016 Bitfinex hack and the 2023 Binance.US SEC episode.

Kaiko's statistics show that hourly trading volume on Bybit surged to a staggering $1.2 billion immediately post-hack. Despite dipping in line with holiday trends, the figures have since stabilized and ascended steadily, spotlighting strong user retention and a burgeoning public trust in Bybit's market resilience.

Radiance as a Differentiator

The Kaiko report underscores Bybit's illustrious record of transparency throughout the recovery process. In contrast with platforms similarly besieged, which have endured prolonged liquidity flare-ups, Bybit's open communication and energetic market structure innovations helped it restore user confidence and stabilize conditions quicker than the average industry pace.

As the digital currency world matures, exchanges are increasingly judged not only by their performance during bullish phases but also by their responses to adversity. Bybit's lightning-fast liquidity rebound and unwavering commitment to user-centric innovation have set a new benchmark for operational resilience in the industry.

Who Is Bybit?

Bybit shines as the world's second-largest cryptocurrency exchange by trading volume, embracing a global community of over 60 million users. Established in 2018, Bybit embarks on a noble crusade for openness in the decentralized realm by constructing a simpler, open, and equal ecosystem for all. With an intimate focus on Web3, Bybit forms alliances with pioneering blockchain protocols to offer top-notch infrastructure and promote on-chain ingenuity. Reputed for its robust custodial practices, diverse marketplaces, intuitive user experience, and advanced blockchain tools, Bybit bridges the chasm between TradFi and DeFi, fostering pioneers, innovators, and enthusiasts to harness the full potential of Web3. Take a peek at the future of decentralized finance at Bybit.com.

For further information about Bybit, visit Bybit Press.

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The Voice of PR

Head of PR *Tony AuBybit*[email protected]

Disclaimer: This press release has been sponsored by our commercial partners.

In the wake of Bybit's remarkable resilience post the massive crypto breach in early 2025, the crypto market has begun to regain trust in exchange platforms.
Bybit's Bitcoin liquidity, as reported by Kaiko, averaged $13 million per day by the end of the first quarter, returning to pre-crisis levels.
The cryptocurrency market reveal successful restoration of market depth for the top 30 cryptocurrencies by market capitalization, with over 80% of pre-pandemonium levels reached by March.
Bid-ask spread volatility, a significant indicator of market stress, deteriorated markedly throughout March, indicating enhanced order book stability and rising liquidity provider participation.
Bybit's hourly trading volume surged to $1.2 billion immediately post-hack, and although it experienced dips during holidays, figures have since stabilized and continued to grow, showcasing strong user retention and trust.
The remarkable revival of Bybit's liquidity to pre-crisis levels within a mere thirty days, as confirmed by Kaiko, sets a new industry benchmark for operational resilience.
Bybit's resilience is positioned as a differentiator in the crypto market, with its commitment to transparency and innovative market structure shoring up user confidence and reducing recovery times.
According to Kaiko's report, Bybit's timely introduction of Retail Price Improvement (RPI) orders played a pivotal role in stabilizing the market and enhancing trading conditions for retail participants.
Bybit, a global cryptocurrency exchange with over 60 million users, focuses on constructing an open and equal ecosystem and forming alliances with blockchain protocols to promote on-chain ingenuity.
In trudging the path towards a future of decentralized finance, Bybit defines itself as a trailblazer, bridging the gap between TradFi and DeFi, and offering state-of-the-art infrastructure and tools to explore Web3's potential.

Rapid Liquidity Recovery Confirmed: Kaiko Affirms Quick Market Rebound Following $1.5B Bybit Hack