Bybit Recovers Liquidity Levels 30 Days After Hack — Kaiko

The cryptocurrency world witnessed a significant shockwave in February 2025 when Bybit, the second-largest exchange by trading volume in the world, fell victim to a massive hack. The cyberattack resulted in the theft of nearly $1.5 billion in funds, leaving investors and users reeling. However, in a remarkable recovery, Kaiko has reported that Bybit has regained its liquidity levels to pre-hack levels just 30 days after the incident.

According to the report by crypto research and analytics firm Kaiko, Bitcoin's (BTC) 1% market depth, a key indicator of liquidity, returned to pre-hack levels of around $13 million per day in March 2025. This significant rebound marks a major milestone in Bybit's post-hack recovery efforts.

While the recovery of Bitcoin's liquidity is a notable achievement, altcoin liquidity levels on the exchange have taken longer to recover. However, according to Kaiko, these altcoin liquidity levels have bounced back to around 80% of their pre-hack levels, indicating a steady and gradual improvement.

The authors of the Kaiko report emphasized that Bybit's trading volumes are still in recovery mode but noted that this drop is largely a reflection of the broader market trends stemming from ongoing macroeconomic uncertainty rather than an effect specific to the hack. This observation underscores the complex interplay between cryptocurrency exchange liquidity, market sentiment, and external economic factors.

The Background: Bybit's February 2025 Hack

On February 21, 2025, Bybit became the focal point of a major cyberattack that resulted in $1.5 billion being drained from its reserves. A comprehensive post-mortem analysis revealed that the hack was caused by a compromised device linked to SafeWallet, the developer behind the multi-signature wallet custody solution used by Bybit.

Notably, despite the severity of the incident, Bybit maintained open withdrawals during the crisis, allowing users swift access to their funds. This proactive approach not only helped mitigate the immediate impact of the hack but also underscored the exchange's commitment to user protection and financial stability.

The Aftermath: Support from the Crypto Industry

The aftermath of the Bybit hack was marked by an outpouring of support from the cryptocurrency community. The CEO, Ben Zhou, reassured investors that Bybit remained solvent and underscored that its reserves could cover any shortfall, whether or not the stolen funds were recovered.

This statement found resonance across the crypto industry, with many exchanges providing bridge loans, technical assistance, and even freezing the stolen funds on their platforms. This collective support served as a testament to the resilience of cryptocurrency markets and the solidarity among industry players in the face of adversity.

The Silver Lining: Lessons for Crypto Exchanges

While the Bybit hack serves as a stark reminder of the vulnerabilities inherent in the cryptocurrency ecosystem, it also presents opportunities for growth and improvement. As exchanges continue to evolve and mature, they are confronted with challenges that demand innovative solutions.

The post-hack recovery efforts by Bybit, coupled with the broader market trends highlighted by Kaiko's report, underscore the need for crypto exchanges to prioritize security, transparency, and user protection. By doing so, these platforms can not only weather external shocks but also foster a more sustainable future for cryptocurrency trading.