Kaiko: Bybit quickly restores liquidity after $1.5 billion hacking incident

According to Kaiko's analysis, Bybit Bitcoin liquidity, measured at a market depth of 1%, will recover to an average of $13 million per day by the end of the first quarter of 2025, returning to pre $1.5 billion levels. The liquidity of all levels of order books has been restored, ranging from 0.1% to 8% above and below the median price, indicating the deep involvement of institutional market makers. The recovery of liquidity is not limited to Bitcoin. As of March, over 80% of the top 30 mainstream altcoins in terms of market capitalization have recovered to pre event levels in terms of market depth. The spreads of major tokens, including high volatility assets such as DOGE and XRP, have significantly tightened, reflecting the decrease in execution costs and the recovery of market making confidence. The volatility of the bid ask spread, a key indicator of market pressure, continued to decline in March, indicating improved order book stability and increased participation of liquidity providers. Despite the cautious market sentiment caused by macroeconomic uncertainty, Bybit trading volume has recovered faster than similar events such as the Bitfinex hack in 2016. According to Kaiko data, Bybit's hourly trading volume surged to $1.2 billion after the incident. Although it briefly fell over the weekend, it steadily rebounded afterwards, highlighting user stickiness and trust in the platform's resilience. The Kaiko report states that high transparency, open communication, and timely optimization of market mechanisms during Bybit's crisis recovery process are key to rebuilding market confidence and trading stability.