In the aftermath of the most significant hack in cryptocurrency history, Bybit is gradually bouncing back—largely due to retail investment.
The crypto exchange Bybit is in recovery mode following an unprecedented hack that caused a $1.6 billion loss. An analytical report commissioned by Bybit examined the details of the breach and the platform’s subsequent resurgence.
In the wake of the hack, Bybit’s market share plummeted from 10% in January 2025 to a mere 4%. However, the report indicates that this figure quickly climbed back to 7% within weeks. Concurrently, both trading volumes and order book depth—the amount of orders at various price points—stabilized swiftly.
“The hack caused a sudden yet short-lived disruption in trading volumes and order book depth, especially in the BTC and ETH markets, but bid-ask spreads for major tokens largely remained stable,” the report highlighted.
The bid-ask spread, which reflects the difference between the selling and buying prices, remained narrow on Bybit despite the drop in volumes. This indicates that market makers remained active, ensuring a well-functioning market even in the aftermath of the breach.
Retail Focus Fuels Bybit’s Recovery
The report credits a portion of Bybit’s recovery to the introduction of Retail Price Improvement (RPI) orders, which are exclusive to retail traders using the app and unavailable to institutions or trading bots. This strategy is designed to create a more level playing field for individual investors.
This feature has gained popularity. Bybit’s 3-stall liquidity, a metric for assessing near-the-market liquidity, was notably higher for RPI orders compared to standard orders, helping the exchange maintain tight spreads for retail and manual traders alike.
The report concludes that RPI orders were instrumental in stabilizing liquidity, marking the initial steps in Bybit’s effort to reclaim its foothold in the spot crypto trading market.