Bybit Unveils Real-Time Liquidation Data, Revealing Hidden Crypto Market Activity

Cryptocurrency exchange Bybit has taken a significant step towards enhancing transparency in the crypto market by making its liquidation data publicly accessible through its application programming interface (API). This move aims to provide traders with more comprehensive and up-to-date information, enabling them to make better-informed decisions.

Previously, Bybit's API restricted liquidation data to one message per symbol per second. However, with the latest upgrade, data is now delivered every 500 milliseconds, significantly improving the flow of information. Bybit CEO Ben Zhou acknowledged that the previous API limitations led to underreported liquidation figures, failing to capture the full scale of market activity.

In early February, the cryptocurrency market experienced a liquidation crisis, with over $2.24 billion liquidated across 730,000 traders, according to CoinGlass. Bybit alone recorded $2.1 billion in liquidations within 24 hours, which was significantly higher than the $333 million attributed to the exchange by CoinGlass. Zhou estimated that the industry's total liquidation value at the time was closer to $10 billion, indicating that the actual market activity was much larger than previously reported.

Bybit's decision to make all liquidation data fully public is a proactive approach in response to the crypto community's demand for openness. Zhou stated, "The real spirit of crypto is transparency," emphasizing the importance of providing traders with accurate and timely information.

While Bybit has been proactive in addressing public demands regarding liquidation data, the exchange has also faced criticism for not listing certain tokens. For instance, the Pi Network community expressed disappointment when Bybit refused to list its token, while rival exchanges OKX and Bitget approved it. Bybit cited a Chinese police warning that labeled the Pi token a scam as the reason for its decision.

Founded as a derivatives exchange in Singapore, Bybit has since expanded into spot trading and relocated its headquarters to Dubai in 2022. On Feb. 21, the exchange recorded the second-highest trading volume among cryptocurrency exchanges, demonstrating its growing influence in the market.

Despite its global reach, Bybit continues to face regulatory scrutiny. The exchange has halted operations in Malaysia and India due to regulatory pressure. However, in France, Bybit was recently removed from the local regulator's blacklist after being listed for "non