Bybit’s Resilient Comeback: Exchange Claws Back Market Share After Historic $1.5B Hack, CoinGecko Reports
In a stunning demonstration of operational resilience, cryptocurrency exchange Bybit executed a slow but steady comeback throughout 2025, reclaiming its position as a top-tier trading platform despite suffering the largest hack in crypto history earlier that year, according to comprehensive data from market aggregator CoinGecko. The exchange’s market share climbed to 8.1% with $1.5 trillion in annual trading volume, signaling a potential paradigm shift in how platforms recover from catastrophic security breaches. This recovery unfolded against a backdrop of overall industry growth, with average trading volumes across the top 10 exchanges rising by 7.6%.
Bybit’s Path to Recovery After Unprecedented Breach
CoinGecko research analyst Shaun Paul Lee detailed the exchange’s remarkable trajectory in a Thursday report. “Despite the major hack Bybit suffered in February, it has clawed its way back to the top,” Lee stated, noting the platform “slowly gained back its dominance throughout 2025.” The February attack, attributed to North Korean actors, exploited a critical vulnerability in Bybit’s cold wallet infrastructure, resulting in a staggering $1.5 billion loss in Ether (ETH). Consequently, this event immediately raised existential questions about the exchange’s future.
Industry precedent suggested a grim outcome. Mitchell Amador, CEO of blockchain security platform Immunefi, told Crypto News Insights earlier in 2025 that nearly 80% of projects that experience a major hack never fully recover. The breakdown in user trust and operational continuity often proves fatal. Bybit, however, defied this statistic through a series of decisive, transparent actions designed to stabilize the platform and reassure its user base.
The Crisis Response That Built Trust
Facing unprecedented pressure, Bybit’s leadership implemented a counter-intuitive strategy. First, the exchange kept withdrawal functions open, honoring all user transactions without restriction. This move prevented a liquidity crisis and bank-run scenario. Second, CEO Ben Zhou appeared in a widely circulated video address, directly confronting user concerns. He assured customers that Bybit retained sufficient funds to cover all liabilities and had secured immediate external liquidity support. This transparent, user-first response stands in stark contrast to the opaque handling of past exchange failures.
2025 Crypto Exchange Landscape: Volumes Climb Amid Volatility
Bybit’s recovery story unfolded within a broader context of industry expansion and fierce competition. CoinGecko’s annual report revealed that six of the top ten exchanges by market share saw their trading volumes increase in 2025. Collectively, these platforms processed an additional $1.3 trillion in trades, representing a 7.6% average growth rate. Four exchanges enjoyed double-digit percentage surges, highlighting a fragmented but growing market.
MEXC emerged as the year’s fastest-growing venue, with trading volumes skyrocketing 91% to $1.5 trillion, up from $766.7 billion in 2024. Lee attributed this explosive growth to MEXC’s “aggressive zero-fee policy across all spot trading pairs,” a strategy that successfully attracted both high-frequency traders and retail users. This competitive dynamic underscores how fee structures and user incentives remain primary battlegrounds for exchange market share.
Top Exchange Performance Highlights (2025):
- Binance: Maintained market leadership with an estimated $7.3 trillion in volume, though it recorded a slight 0.5% year-on-year decline.
- Bybit: Achieved $1.5 trillion in volume, securing the second-highest spot and an 8.1% market share.
- MEXC: Led growth with a 91% volume increase to $1.5 trillion.
- Industry Average: 7.6% trading volume growth across the top 10 exchanges.
Binance Holds Lead Amid Market Headwinds
Despite not registering volume growth, Binance consolidated its position as the undisputed market leader. In a December open letter, co-CEOs Richard Teng and Yi He announced the platform’s user base had surpassed 300 million, with total trading volumes across all products reaching $34 trillion for the year. Lee suggested Binance’s volume slump could be “attributed to the general bearish sentiment in the crypto market after the historical liquidation event on Oct. 10.” This event created widespread caution among traders, impacting even the largest platforms.
Security, Trust, and the Future of Exchange Resilience
The Bybit incident of February 2025 has become a case study in crisis management and trust restoration. The hack’s scale—$1.5 billion—immediately tested the exchange’s financial reserves and its commitment to user asset protection. By choosing transparency and maintaining operational continuity, Bybit provided a blueprint for other platforms facing similar crises. The event also intensified industry-wide scrutiny of cold wallet storage solutions and infrastructure security, likely accelerating investments in more robust, multi-signature custody systems.
Furthermore, the overall growth in trading volumes across 2025 occurred despite significant market volatility. Bitcoin and other major cryptocurrencies recorded multiple all-time highs during the year, driving retail and institutional interest. This bullish price action, combined with competitive fee structures and innovative product offerings from exchanges like MEXC, created a fertile environment for trading activity. The data suggests that the crypto exchange market is maturing, with users distributing their activity across multiple platforms based on security, fees, and reliability.
Conclusion
Bybit’s 2025 recovery from a devastating $1.5 billion hack represents a landmark event for the cryptocurrency industry. The exchange’s slow but steady comeback, documented by CoinGecko, demonstrates that transparent communication and user-centric crisis response can rebuild trust. While Binance maintained its top position and MEXC led in growth through aggressive pricing, Bybit’s story underscores the critical importance of security and resilience. As the industry evolves, the ability to withstand and recover from operational shocks will increasingly define which exchanges earn long-term user confidence and market share.
FAQs
Q1: How much market share did Bybit regain in 2025 after the hack?
Bybit achieved an 8.1% market share in 2025, according to CoinGecko, following a “slow and steady” recovery throughout the year after the February hack.
Q2: What was the total value stolen in the Bybit hack?
North Korean attackers stole $1.5 billion worth of Ether (ETH) from Bybit in February 2025 by exploiting a vulnerability in the exchange’s cold wallet infrastructure.
Q3: Which exchange grew the fastest in 2025?
MEXC was the fastest-growing major exchange in 2025, with trading volumes jumping 91% to $1.5 trillion, largely due to its zero-fee spot trading policy.
Q4: Did overall crypto exchange trading volume increase in 2025?
Yes, trading volumes across the top 10 cryptocurrency exchanges rose by an average of 7.6% in 2025, representing an extra $1.3 trillion in trades compared to 2024.
Q5: How did Bybit’s leadership respond to the hack to ensure recovery?
CEO Ben Zhou publicly addressed users, assuring them the exchange had sufficient funds. Bybit also kept withdrawals open and honored all transactions, securing immediate external liquidity to maintain operations.
