Bybit's 29th Proof-of-Reserves Report: A Trust Signal for Crypto Investors?

In the wake of the 2025 Bybit hack-a $1.5 billion Ethereum theft attributed to the North Korea-linked Lazarus Group-the crypto industry's demand for transparency has reached a fever pitch. Centralized exchanges (CEXs) are now under intense scrutiny to prove solvency, with Proof-of-Reserves (PoR) audits emerging as a critical tool for rebuilding trust. Bybit's 29th PoR report, released on December 24, 2025, offers a compelling case study in how regular transparency measures can stabilize investor confidence and preserve exchange valuation amid systemic risks.

The 29th PoR Report: A Snapshot of Solvency

Bybit's latest PoR report, independently verified by cybersecurity firm Hacken, confirms that the exchange maintains reserve ratios exceeding 100% for all major assets. Key figures include:
- 102% for USDT (User Assets: $5.9B | Bybit Wallet Balance: $6.1B)
- 112% for USDC (User Assets: $583.5M | Bybit Wallet Balance: $658.4M)
- 105% for BTC (User Assets: 59,711 BTC | Bybit Wallet Balance: 63,206 BTC)
- 101% for ETH (User Assets: 528,519 ETH | Bybit Wallet Balance: 536,845 ETH) according to the report.

These ratios not only meet the 1:1 backing standard but also establish liquidity buffers, a critical feature for maintaining operational stability during crises. The report underscores Bybit's commitment to monthly PoR disclosures, a practice initiated in June 2024 to reinforce transparency.

Investor Confidence: A Post-Hack Resilience Test

The February 2025 hack severely tested Bybit's credibility. Despite losing $1.5 billion in ETH, the exchange leveraged its PoR framework to reassure users. Within 72 hours, Bybit replenished reserves using $447,000 ETH from Galaxy Digital, FalconX, and Wintermute, restoring 1:1 collateralization. This swift action, coupled with Hacken's verification, prevented a mass exodus of users and liquidity.

Data from the 29th PoR report reveals that Bybit's reserve ratios for USDC and BTC have even improved post-hack, with USDC rising to 112% from 105% in June 2025 and BTC to 105% from 102% in June 2025. Such metrics signal fiscal discipline, countering skepticism about the exchange's ability to recover.

Valuation Metrics: Market Share and Trading Volume

Bybit's valuation resilience post-hack is evident in its market share and trading volume. As of December 2025, Bybit retained its position as the second-largest CEX by trading volume, with a 24-hour spot volume of $9.2 billion-driven largely by the NIGHT/USDT pair. While its centralized exchange market share dipped to 7.6% in H1 2025 (down from 8.5% in 2024), this decline was offset by a rebound in derivatives market dominance, which recovered to 21% by mid-2025.

User growth also reflects confidence in Bybit's transparency measures. The platform surpassed 70 million registered users by May 2025, with AI-powered tools like TradeGPT attracting 5 million users. Website traffic surged to 20.71 million visits in October 2025, with users spending an average of 13 minutes per session.

The Broader Implications for Crypto Investors

Bybit's PoR strategy highlights a paradigm shift in the crypto industry. Pre-2025, trust in CEXs was often based on opaque assurances. Now, verifiable PoR audits are becoming a standard, with investors prioritizing platforms that demonstrate real-time solvency. Bybit's ability to maintain reserve ratios above 100% post-hack has not only stabilized its valuation but also set a benchmark for competitors.

However, challenges remain. The 2025 hack exposed vulnerabilities in third-party vendor management, a risk that PoR audits alone cannot fully mitigate according to analysis. Regulatory scrutiny is also intensifying, with calls for stricter oversight of crypto mixers and operational security protocols as reported by Kroll.

Conclusion: A Trust Signal, But Not a Panacea

Bybit's 29th PoR report is a testament to the power of transparency in restoring investor confidence. The exchange's reserve ratios, coupled with its rapid post-hack recovery, demonstrate that PoR audits can serve as a trust signal in a post-crisis environment. Yet, as the 2025 hack illustrates, no system is immune to sophisticated attacks. For investors, the lesson is clear: while PoR is a critical tool, it must be complemented by robust cybersecurity and regulatory compliance to ensure long-term stability.

In a market where trust is the most valuable asset, Bybit's PoR-driven strategy offers a blueprint for resilience-but not a guarantee of invulnerability.