Bybit Recovers Rapidly - Kaiko Confirms Swift Liquidity Restoration After $1.5 Billion Breach

Bybit, the world's second biggest crypto exchange, has outpaced industry peers with a record-breaking liquidity recovery after a $1.5 billion heist in February 2025.

A three-month analysis by Kaiko, a top crypto data provider, showcased that Bybit's Bitcoin liquidity (measured by 1% market depth) bounce back to pre-breach levels within thirty days. This recovery was remarkable given the challenging macro climate, like escalating global trade tensions stemming from U.S. trade policy shifts[1][2].

Bybit's market depth recovered across all order book tiers, from 0.1% to 8%, pointing to profound institutional backing. A crucial part of this remarkable comeback was the timely launch of Retail Price Improvement (RPI) orders on February 20, 2025 - a day before the attack[3].

These RPI orders, restricted to manual traders on Bybit's platform and off-limits via API, are placed by institutional market makers to enhance trading conditions for retail users. Post-incident, RPI orders aided in stabilizing the market, tightening spreads, and safeguarding manual traders from predatory automated actions.

Altcoin market strength followed suit, with over 80% of pre-hack market depth for the top 30 crypto assets by market cap restored by March. Spreads across tokens like high-volatility tokens such as DOGE and XRP narrowed significantly, reflecting improved execution costs and growing market maker confidence[3].

Bid-ask spread volatility, an indicator of market stress, also declined during March, signifying improved order book stability and increased liquidity provider involvement.

Volumes recuperated faster than after comparable shocks like the 2016 Bitfinex hack or the 2023 Binance.US SEC case. Kaiko's data showed an immediate spike in hourly trading volume on Bybit to $1.2 billion post-attack. While volumes dipped in line with traditional trends, they have since normalized and climbed steadily, highlighting strong user retention and faith in Bybit's resilience[3].

Swift Transparency Makes All the Difference

One of the defining takeaways from Kaiko's report is Bybit's transparency throughout its recovery process. Compared to other platforms under similar circumstances, which experienced prolonged liquidity deterioration, Bybit's open communication and market structure innovations expedited trust restoration and market stabilization[3].

As the crypto world enters maturity, exchanges are being graded not just on performance during growth phases, but how they cope with adversity. Bybit's rapid liquidity rebound and dedication to user-centric innovation set a benchmark for operational resilience in the sector[3].

About Bybit

Founded in 2018, Bybit is the second-largest cryptocurrency exchange by trading volume, boasting a global community of over 60 million users. Bybit aims to promote openness in the decentralized world by creating a more straightforward, open, and equitable ecosystem for everyone. With a strong focus on Web 3.0, Bybit connects strategically with leading blockchain protocols to establish robust infrastructure and foster on-chain innovation[4].

Diverse marketplaces, an intuitive user experience, and innovative blockchain tools distinguish Bybit, bridging the gap between TradFi and DeFi, empowering developers, creators, and enthusiasts to unlock the full potential of the future[4].

Discover the future of DeFi at Bybit.com.

For complete details about Bybit, visit Bybit Press.

For media inquiries, please contact here.

For updates, follow Bybit's communities and social media.

Contact

Tony Au, PR Head for Bybit

[Disclaimer]: This content is sponsored and should be considered promotional material. Opinions and statements expressed herein are those of the author and do not represent the opinions of The Daily Hodl. The Daily Hodl is not a subsidiary of or owned by any ICOs, blockchain startups, or companies that advertise on our platform. Investors should conduct thorough due diligence before making investments in any ICOs, blockchain startups, or cryptocurrencies. Please note that your investments carry risks, and any losses sustained are your responsibility.

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Bybit's swift recovery from the $1.5 billion hack in February 2025 has highlighted its resilience in the decentralized finance (DeFi) industry, setting a benchmark for operational resilience.
A three-month analysis by Kaiko revealed that Bybit's Bitcoin liquidity bounced back to pre-breach levels within thirty days, a remarkable feat given the challenging macro climate.
Bybit's market depth recovery across all order book tiers, from 0.1% to 8%, points to profound institutional backing, with the timely launch of Retail Price Improvement (RPI) orders playing a crucial role.
The altcoin market also showed strength, with over 80% of pre-hack market depth for the top 30 crypto assets by market cap restored by March, reflecting improved execution costs and growing market maker confidence.
Highlighting Bybit's transparency, the exchange's open communication and market structure innovations expedited trust restoration and market stabilization during the recovery process.
As the crypto world matures, exchanges like Bybit are being graded not just on performance during growth phases, but also on how they cope with adversity, underscoring the importance of a robust and decentralized infrastructure.

Bybit Recovers Rapidly - Kaiko Confirms Swift Liquidity Restoration After $1.5 Billion Breach