Global trading volume's second-largest cryptocurrency exchange, Bybit, has been featured in a latest research report by renowned on-chain market intelligence firm Glassnode. The analysis highlights Bybit's record-breaking recovery speed and immediate response, which successfully mitigated potential market shocks that could have triggered a spiral decline across the cryptocurrency industry.
Key Findings from Glassnode's Resilience Report
The comprehensive report, titled Digital Asset Market Resilience: A Deep Dive into the Bybit-Lazarus Hack, examines the February 2025 cyberattack—the largest cryptocurrency hack in history, amounting to $1.4 billion. The study includes:
- Timeline reconstruction
- Transaction activity tracking
- Critical market data analysis
- Comparative assessment of traditional financial crises vs. digital asset disruptions
Unlike historical financial crises and crypto market crashes, the industry-wide response to the Bybit-Lazarus hack signals a new era of resilience in digital asset markets.
👉 Discover how Bybit handled the crisis
Recovery Metrics: Perpetual Contracts & Trading Volume
The report focuses on BTC, ETH, and SOL performance on Bybit's platform:
ETH Perpetual Contracts
- Recorded sharpest contraction in open interest post-attack (February 22).
- Full recovery within two months, surpassing long-term averages.
BTC & SOL Trajectories
- Both assets rebounded to pre-hack levels.
- BTC open interest hit $8.5 billion (all-time high).
- SOL surpassed $1.2 billion in May.
"ETH perpetual trading volume remained stable despite being the primary attack target. Recent weeks saw volumes spike to $8.5 billion daily—a historic milestone." — Glassnode Analyst
Liquidity Stabilization: Narrowing Spreads & Improving Depth
Post-attack challenges:
- Buy-sell spreads widened
- Market depth plummeted
- 350,000 withdrawals in 12 hours
Recovery signs (April onward):
- Spreads near pre-event levels
- Market depth exceeded pre-hack benchmarks
👉 Explore Bybit’s liquidity solutions
Why Bybit’s Hack Didn’t Trigger Industry Collapse
Glassnode’s proprietary model assessed operational stability:
- Internal Fund Reallocation Ratio
- Whale Withdrawal Ratio
Both metrics showed brief spikes before normalizing rapidly.
Critical success factors:
✔ Swift operational response
✔ Transparent disclosures
✔ Strict internal controls
Industry Implications
Unlike FTX or Terra crises, this event demonstrated:
✅ Enhanced sector-wide risk resistance
✅ Institutional-grade operational standards
✅ Potential to reshape investor confidence
FAQs
Q: How long did Bybit take to recover from the hack?
A: Key metrics (open interest, trading volume) stabilized within two months, with full recovery by May.
Q: What made Bybit’s response effective?
A: Immediate action, transparency, and robust liquidity management prevented systemic risks.
Q: Did user assets remain secure?
A: Yes. Bybit’s custody systems and internal controls ensured no customer funds were compromised.
Q: How does this compare to past crypto exchange hacks?
A: Unlike Mt. Gox or Coincheck, Bybit’s case showed unprecedented market resilience and quick rebound.
Q: What’s the long-term impact on cryptocurrency markets?
A: The event signals growing maturity, potentially accelerating institutional adoption.
Bybit’s handling of this crisis sets a new benchmark for exchange security and crisis management, reinforcing its position as a leader in cryptocurrency infrastructure.
For the full report, visit Glassnode Insights.