Bybit Hack Shows Crypto Market's 100% Recovery, New Highs

On-chain data firm Glassnode released a research report analyzing the fund flow performance and industry impact of Bybit following a $1.4 billion hack in February 2025. The report highlighted that Bybit and the overall crypto market demonstrated unprecedented resilience, successfully avoiding a meltdown-style cascading effect seen in previous incidents such as FTX and Terra. This event marked a significant maturity leap for the industry, showcasing its ability to withstand and recover from major shocks.

The report emphasized several key points. Firstly, major cryptocurrencies such as BTC, ETH, and SOL fully recovered and hit new highs, indicating a strong market recovery. Secondly, ETH's daily trading volume surpassed $8.5 billion, setting a new record and demonstrating the market's robust activity. Additionally, Bybit processed 350,000 withdrawals within 12 hours post-attack, with liquidity fully restored since April. This swift response underscored the platform's operational efficiency and resilience. Furthermore, the report noted that no systemic risks were observed in the industry, and investor confidence is steadily recovering, reflecting a stable and resilient market environment.

Glassnode referred to this event as a "watershed moment for the maturity of the crypto market’s shock resistance." The successful handling of the hack and the subsequent recovery of the market have the potential to reshape external investors' confidence in the industry. This event serves as a benchmark for the industry's resilience and its ability to navigate through significant challenges, paving the way for future growth and stability.

In summary, the Glassnode report on Bybit's response to the Lazarus hack highlights the industry's growing maturity and resilience. The swift recovery of major cryptocurrencies, the record-breaking trading volume, and the efficient handling of withdrawals all contribute to a positive outlook for the crypto market. This event not only demonstrates the industry's ability to withstand shocks but also sets a new benchmark for resilience, potentially attracting more investors and fostering further growth in the sector.