Bybit, a prominent cryptocurrency exchange, has restored its liquidity to pre-hack levels just 30 days after suffering a devastating attack that drained $1.5 billion in funds. According to a report from crypto research and analytics firm Kaiko, Bitcoin’s market depth on the exchange has rebounded to approximately $13 million per day as of March 2025. Altcoin liquidity has been slower to recover, reaching around 80% of pre-hack levels due to the ongoing risk-off market environment.
Kaiko Report Highlights Bitcoin’s Safe Haven Status
The Kaiko report underscored that while Bitcoin remains a volatile asset, it is still perceived as a safe haven in the cryptocurrency market, helping it recover liquidity faster than altcoins. “This lag is largely due to the risk-off market environment, which has impacted altcoins more severely,” the report noted. Despite the liquidity recovery, Bybit’s overall trading volumes remain lower, reflecting broader market uncertainty driven by macroeconomic concerns rather than the aftermath of the hack.
Also Read: Bybit Bounces Back: Kaiko Validates Fast Liquidity Recovery Post-$1.5B Hack
Bybit’s Incident Response and Industry Support
The February 2025 attack on Bybit was traced back to a compromised device used by a SafeWallet developer, the company responsible for the multi-signature wallet custody solution. Despite the breach, Bybit kept withdrawals open, allowing users to access their funds with minimal delay. Bybit CEO Ben Zhou reassured investors of the exchange’s solvency, stating that reserves could cover the shortfall regardless of whether the stolen funds were recovered.
In a show of industry solidarity, several crypto platforms provided bridge loans, technical assistance, and helped freeze the stolen assets. Bybit’s rapid response and transparency have bolstered investor confidence, positioning the exchange for a potential recovery in trading volumes as market conditions stabilize.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
