Following the biggest crypto hack in history, Bibit is slowly recovering. This is appreciative of the majority of retail investments.
Crypto Exchange Bybit is recovering from the biggest hack in cryptography history, resulting in a loss of $1.6 billion. In a Block Scholes research report commissioned by Bybit, the analytics company outlined the nature of the crash and subsequent recovery.
Following the hack, Bybit's market share fell to just 4% from 10% in January 2025. However, the number rebounded to 7% within weeks, according to the report. At the same time, both the transaction volume and the depth of the order book, as well as the volume of orders at different price levels, quickly stabilized.
“The hack caused sharp but short confusion in volume and depth of order book, especially in the BTC and ETH markets, but the spread of bid asks spread across major tokens remained largely unharmed,” the report states.
The widening of bids, or differences in the prices of sellers and buyers, were closely tied to the Bibit, despite the decline in volume. This suggests that market makers are active and contribute to efficient markets in response to incidents.
Bibit's retail focus helps recover
The report also attributes part of Bybit's recovery to the start of retail price improvements (known as RPI) orders. These orders are available only to retailers using the app and are not accessible to institutions or trading bots. This approach aims to level the arena for individual investors.
This feature was popular. BYBIT's three stall liquidity was a measure of liquidity close to the market, with RPI orders significantly higher than regular orders. This helped the exchange to maintain the tough spreads for retailers and manual traders.
BTCUSDT spots 3rd floor liquidity with order type, RPI, Non-RPI, February 24, 2025 – APR 1 – Apr 1 from 3rd floor liquidity | Source: Bybit
According to the report, RPI orders played a key role in stabilizing liquidity, marking the first step in Bybit's efforts to regain share in the Spot Crypto Trading Market.
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