Kaiko: Bybit quickly restores liquidity after $1.50 billion hack

On May 7, according to Kaiko's analysis, Bybit Bitcoin liquidity as measured by 1% market depth recovered to a daily average of $13 million by the end of Quarter 1, 2025, fully returning to the level before the $1.50 billion hack. Liquidity has recovered at all levels of the order book, ranging from 0.1% to 8% above and below the medium price, showing the deep involvement of institutional market makers. The recovery of liquidity is not limited to Bitcoin. By March, more than 80% of the mainstream counterfeit products in the top 30 by market capitalization had returned to pre-event levels of market depth. Major token spreads, including highly volatile assets such as DOGE and XRP, have tightened significantly, reflecting lower execution costs and a return to market making confidence. Bid-ask spread volatility - a key measure of market stress - continued to decline in March, reflecting improved order book stability and greater engagement by liquidity providers.
Despite the cautious market sentiment caused by macroeconomic uncertainty, Bybit's trading volume recovered faster than similar events such as the Bitfinex hack in 2016. Kaiko data shows that Bybit's hourly trading volume soared to $1.20 billion after the incident. Although it fell briefly over the weekend, it then rebounded steadily, highlighting user stickiness and trust in the resilience of the platform. Kaiko reported that a high degree of transparency, open communication and timely optimization of market mechanisms during Bybit's recovery from the crisis were the keys to rebuilding market confidence and trading stability.