Bybit Liquidity Sees Rapid Recovery 30 Days After $1.5B Crypto Hack
The cryptocurrency world was shaken by the February 2025 security incident that impacted the Bybit exchange, resulting in a significant loss. However, just 30 days later, data from crypto research firm Kaiko reveals a remarkable turnaround: Bybit has largely recovered its liquidity levels to pre-hack conditions. This swift rebound is a key indicator of the exchange’s resilience and effective response following the crypto hack.
Bybit’s Liquidity Levels Bounce Back
According to the report from Kaiko, the second-largest cryptocurrency exchange by trading volume, Bybit, has seen a substantial recovery in its market depth. This metric is crucial for traders as it indicates how easily large orders can be executed without significantly impacting the price – essentially, a measure of liquidity. The overall liquidity picture for Bybit shows a strong return towards levels seen before the February incident.
Bitcoin Liquidity Leads the Recovery
Breaking down the data, Kaiko’s analysis highlights that Bitcoin’s (BTC) 1% market depth on Bybit has fully returned to its pre-hack levels. In March 2025, this figure stood at around $13 million per day, indicating robust liquidity for the flagship cryptocurrency on the platform. This rapid recovery for Bitcoin liquidity suggests strong confidence specifically in trading BTC on Bybit following the security event.
Altcoin Liquidity Shows Steady Progress
While Bitcoin’s recovery has been complete, altcoin liquidity on the Bybit exchange has followed a slightly slower, but still positive, trajectory. The Kaiko report notes that altcoin liquidity has rebounded to approximately 80% of its pre-hack levels. The researchers attribute this lag partly to the broader market environment, which has seen investors leaning towards lower-risk assets, impacting altcoins more significantly than Bitcoin, which is often seen as a relative safe haven within the crypto space.
Overall Trading Volume and Market Context
It’s important to note that while liquidity has recovered, Bybit’s overall trading volumes are still in a recovery phase. However, the Kaiko report clarifies that this drop in volume appears to align with a broader market trend. The report suggests that ongoing macroeconomic uncertainty is impacting risk asset markets globally, and the dip in trading volume on Bybit reflects this wider trend rather than being a direct, lingering effect solely from the crypto hack.
Bybit’s Incident Response and Solvency Assurance
The February 21, 2025, crypto hack on Bybit resulted in an estimated $1.5 billion loss, reportedly caused by a compromised device linked to a third-party multi-signature wallet provider, SafeWallet. Despite the scale of the incident, Bybit maintained open withdrawals throughout the crisis, allowing users access to their funds. Bybit CEO Ben Zhou quickly addressed the situation, assuring investors that the exchange was solvent and possessed sufficient reserves to cover the losses, irrespective of fund recovery efforts. This decisive response and solvency assurance rallied support from across the crypto industry, with competitors offering assistance and freezing stolen funds, contributing to the platform’s ability to navigate the crisis and facilitate the recovery of liquidity and operations.
Summary: A Resilient Recovery
The data from Kaiko paints a picture of impressive resilience for Bybit. Despite suffering one of the largest crypto hacks in history, the exchange managed to restore crucial liquidity metrics to near or full pre-incident levels within a month. The swift recovery of Bitcoin liquidity, coupled with the steady progress in altcoin liquidity, underscores the platform’s operational strength and the effectiveness of its incident response and solvency measures. While overall trading volumes reflect broader market conditions, the core function of providing deep markets for traders on Bybit has seen a rapid and successful rebound.
