Bybit Regains market Share To 7% After $1.4B Hack
Bybit, one of the world’s top centralized cryptocurrency exchanges, has made a surprising comeback after suffering a devastating $1.4 billion hack earlier in 2025. The Dubai-headquartered platform has now regained 7% of global crypto trading market share, a significant recovery from its post-hack low of 4%, according to data from multiple crypto market intelligence firms. This rapid rebound not only showcases Bybit’s resilience but also highlights the evolving dynamics of trust, liquidity, and security in centralized exchanges.
The breach occurred in February 2025 and was one of the most damaging attacks in crypto history. Malicious actors stole over $1.4 billion in crypto assets, primarily liquid-staked Ethereum (stETH) and Mantle-staked ETH (mETH). Investigations by global security agencies and blockchain analytics firms later confirmed that the sophisticated attack was orchestrated by the North Korean Lazarus Group, a notorious cybercrime syndicate with a long record of targeting crypto platforms.
The incident initially caused a massive loss of confidence. Traders and institutional clients withdrew significant funds, and Bybit’s spot and derivatives trading volumes plummeted. Market share dropped dramatically from approximately 10% to a mere 4%, as users moved funds to exchanges perceived to have more robust security systems like Binance, Coinbase, and OKX.
However, Bybit didn’t waste any time initiating a well-orchestrated comeback plan. The platform quickly launched a comprehensive internal audit, partnered with cybersecurity specialists, and deployed new security protocols including upgraded multi-factor authentication, zero-trust architecture, and real-time transaction monitoring. Additionally, Bybit strengthened insurance provisions and created a $250 million user protection fund, sending a strong signal to users that their assets would be safeguarded moving forward.
What truly accelerated the recovery was Bybit’s focus on market liquidity and innovation. In early April, the exchange launched a new feature called Retail Price Improvement (RPI) orders. This tool offered retail traders better pricing execution and reduced slippage, mimicking the liquidity advantages typically available to institutional players. As a result, Bybit saw a noticeable uptick in daily trading volumes and returning retail participation.
Institutional traders, too, began to trickle back, especially after Bybit restored integration with major algorithmic trading platforms and reactivated liquidity pools in derivatives markets. Bybit also introduced zero-fee trading promotions and token incentives for both spot and perpetual contracts, giving them a competitive edge in a crowded exchange environment.
These aggressive moves helped Bybit climb back to a 7% global market share, recovering the trust of a segment of its user base and signaling that the exchange remains a formidable force in the crypto space. While it hasn’t yet fully returned to its pre-hack dominance, analysts believe that Bybit’s transparency, quick response, and technical upgrades have set a strong foundation for continued growth.
The hack, however, has left a lasting impression on the industry. Regulators and crypto watchdogs have since called for stricter security audits and real-time incident disclosure protocols for centralized platforms. Meanwhile, users are becoming more vigilant, often demanding clarity on proof-of-reserves, custodial arrangements, and security policies before storing assets on exchanges.
The Lazarus Group’s involvement also emphasized the geopolitical risks in crypto. The use of stolen funds to fund state-backed cyber activities has drawn renewed attention from U.S. and European enforcement agencies, prompting potential sanctions and investigations against exchanges found lacking in compliance.
Despite the challenges, Bybit’s recovery story stands as a case study in crisis management and exchange reputation rebuilding. It underscores how swift action, transparency, innovation, and user-centric design can restore confidence even after catastrophic events.
As of now, Bybit appears focused on regaining lost ground and possibly surpassing previous highs. If it maintains this trajectory and continues delivering value to both retail and institutional clients, it could solidify its standing as one of the top centralized exchanges in the post-2025 crypto market landscape.
