Following a major hack that drained a significant amount of ETH from Bybit's wallets, the exchange managed to recover its reserves. This has helped stabilize the platform's operations and rebuild user confidence.
Recovery of Ethereum Reserves
According to available data, Bybit's Ethereum reserves dropped from 443,691 ETH to 39,692 ETH within an hour of the attack. The exchange managed to recover the losses through loans, asset purchases, and large deposits. As a result, Bybit was able to increase its reserves to 446,870 ETH ($1.23 billion). Ethereum netflow data indicates a similar recovery pattern, highlighting the exchange's active efforts to replenish reserves.
Funding Rate Decline and Market Reaction
The Bybit hack raised concerns about Ethereum's price movements, particularly as funding rates show a downward trend. Negative values of the rate, which measures the cost of holding long or short positions in futures contracts, indicate strong selling pressure. Market analysts point out that if the trend continues, Ethereum could find it challenging to maintain levels above $3,000. Traders are observing to determine $2,500 as a significant support level.
Bybit Hacker Burns ETH
On-chain data from Crypto Rover shows the Bybit hacker burnt $42.7 million worth of ETH, removing it from circulation. The market is speculating about the potential impact of this action on price dynamics. With a reduced supply, prices might climb higher, but current market uncertainty remains a key factor affecting ETH's short-term outlook.
The situation with Bybit highlights the importance of fast response and collaboration among key market players in restoring liquidity and stability. Despite potential short-term price fluctuations, the efforts made inspire confidence in the platform's future and its capacity to recover swiftly from crises.
