The cryptocurrency exchange Bybit is recovering its Bitcoin (BTC) liquidity following a hack that occurred in February. This event has significantly impacted the market, which seeks stability.
Liquidity Recovery at Bybit
Following the cyberattack in February, which mainly affected Ethereum (ETH), Bybit is witnessing a recovery in Bitcoin liquidity. Data collected by Kaito Research shows that Bybit's liquidity is improving, and market depth levels have reached pre-attack values.
Bybit continues to offer special liquidity for retail orders, creating a deeper pool for small-scale trading.
Impact of the Hack on the Market
The first 30 days after the attack were critical for rebuilding liquidity. Bybit handled over 350,000 withdrawal requests, maintaining traders' trust during instability in the market.
The exchange faced its most significant liquidity issues in the first month after the hack, but quickly adapted, allowing it to recover $2.8 billion in daily trading volumes.
Recovery of Altcoin Liquidity
Liquidity for altcoins on Bybit is recovering at a slower pace. While the exchange has regained 80% of its market depth, the altcoin market continues to suffer from bearish sentiment. Established tokens such as UNI and LTC increased their liquidity by 50% shortly after the incident, while the overall market remains under pressure.
In conclusion, Bybit has demonstrated its recovery capability after attacks, distinguishing itself among other exchanges that faced similar challenges following such incidents.
