Bybit, 1.4 trillion won hacking recovery after market share…Regaining Trust?

Trend of Bybit's Spot Trading Share Among Top 20 CEX (Source: BlockScholes)

Cryptocurrency Exchange Bybit is showing a rapid recovery trend after a large-scale hacking incident in February. The trading volume and share that plummeted immediately after the incident have been rebounding recently, with evaluations suggesting that the exchange's security enhancement measures and liquidity securing efforts are proving effective.

Cryptocurrency Analyst Block Scholes stated in a report released on April 9, "Although trading volume decreased and the market share significantly dropped for a while after the hacking, it is showing a rising trend again recently," adding, "As investor sentiment recovers and trading volumes return, Bybit's market share is rebounding steadily."

On February 21, Bybit suffered a large-scale hacking that caused approximately 1.4 billion dollars of damage, including digital assets such as Liquid Staking Ethereum (stETH) and Mantle Staking Ethereum (mETH). This incident was recorded as one of the largest in cryptocurrency history.

Bybit's spot market share dropped to a level of 4% immediately after the hacking but has since recovered to the 7% level. Block Scholes analyzed this as a "sign of gradually recovering spot trading volume and market activity."

The report also pointed out that the decrease in Bybit's trading volume was not solely due to the hacking. At that time, risk-aversion movements due to macroeconomic uncertainty were already underway across the cryptocurrency market, which is interpreted to have also affected the contraction in Bybit's trading volume.

Following the incident, Bybit has comprehensively upgraded its security system and strengthened measures to secure liquidity, focusing on restoring user trust. As the improvement of the trading environment has become the driving force behind the recovery of market share, attention is focused on whether the growth trend can be sustained in the future.