The Good Tech Companies - Bybit Bounces Back: Kaiko Validates Fast Liquidity Recovery Post-$1.5B Hack

Episode Date: May 7, 2025

This story was originally published on HackerNoon at: https://hackernoon.com/bybit-bounces-back-kaiko-validates-fast-liquidity-recovery-post-$15b-hack. 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 Check more stories related to web3 at: https://hackernoon.com/c/web3. You can also check exclusive content about #web3, #bybit, #chainwire, #press-release, #bybit-hack, #bybit-announcement, #blockchain-development, #good-company, and more. This story was written by: @chainwire. Learn more about this writer by checking @chainwire's about page, and for more stories, please visit hackernoon.com. Bybit was the target of a coordinated cyberattack resulting in $1.5 billion in unauthorized withdrawals. Bybit’s liquidity rebounded to pre-incident levels within just 30 days. Liquidity recovered across all order book tiers, underscoring deep institutional participation.

This audio is presented by Hacker Noon, where anyone can learn anything about any technology. Bybit bounces back. Kaiko validates fast liquidity recovery post $1.5 billion hack. By Chainwire, Dubai, UAE, May 7, 2025, Chainwire, in the aftermath of the largest hack in crypto history, Bybit has emerged as a case study in market resilience, transparency, and user trust. 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 cyber attack 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. A 3-0 DAY turnaround LED by Market Structure Innovation according to Kaiko's analysis, Bybit's Bitcoin liquidity, measured by the 1% 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 8% of the mid-price, underscoring deep institutional participation.

A key contributor to this recovery was the timely launch of retail price improvement, RPI, orders on February 20, just one day before the attack. Thesiorders, 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. Altcoin market strength and narrowing SPREADS 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 marketmaker 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. Volumes recover faster than in previous crises while broader market sentiment remained cautious amid macroeconomic uncertainty. Bybit's trading volumes rebounded faster than after comparable shocks such as 2016 Bitfinex hack or the 2023 Binance.

US SEC case. Kyco'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 weakened 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 as a differentiator One of the standout takeaways from the Kaiko report is 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. Hashtag Bybit Hashtag the crypto-ark ABOUTBYBIT 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 Web3, 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 Web3. Discover the future of decentralized finance at Bybit.com. For more details about Bybit, please visit Bybitpress for media inquiries. Please contact media at Bybit.com for updates. Please follow Bybit's communities

and social media Discord, Facebook, Instagram, LinkedIn, Reddit, Telegram, TikTok, X, YouTube contact head of PR Tony O bybit media at bybit.com. Tip This story was published as a press release by Chainwire under Hacker Noon's business blogging program. Thank you for listening to this Hacker Noon story, read by Artificial Intelligence. Visit HackerNoon.com to read, write, learn and publish.