Crypto Markets Passed $1.4B ‘Stress Test’ with Bybit Hack: Report

The crypto market showed surprising resilience after the $1.4 billion Bybit hack in February, according to a new report from Glassnode and Bybit. Bybit, the third largest centralized cryptocurrency exchange (CEX), processed nearly $2.6 billion in trades in the past 24 hours, per CoinGecko.

The hack, linked to North Korea’s Lazarus Group, drained over $1.4 billion in ETH from a Bybit cold wallet, making it the largest CEX-hack to date — as well likely the largest single exploit in any sector. Bybit quickly reimbursed users and replenished its reserves, however, the incident sparked concerns over custodial security and off-chain risk.

Following the exploit, Ethereum perpetual futures open interest (OI) on Bybit fell from $3.3 billion to $1.5 billion by early April, the report states. Over the same period, the spot price of ETH dropped from over $2,800 to around $1,400.

Bitcoin perps OI on Bybit also dropped, from $8.5 billion to $5.1 billion in the week following the hack, while Solana perps OI also experienced a sharp decline over the same period, falling from $1 billion to $570 million.

However, all three have since recovered, with Ethereum OI now at $3.9 billion and Solana OI reaching a new high of $1.2 billion. “This suggest that customer confidence in Bybit as restored quickly, with traders willing to return to the platform,” the report states.

Ethereum trading volume on Bybit even hit an all-time high of $8.5 billion per day after the hack, according to the report.

Glassnode’s report finds that the market’s quick recovery and consistent trading activity suggest that overall, crypto is becoming more resilient. Where traditional markets might have faltered, crypto held firm – even in the face of a billion-dollar hack.

“Bybit’s case is not just a recovery story, but a stress-tested validation of institutional-grade practices now taking root in digital asset markets,” the report reads. “If such resilience becomes the norm, it may pave the way for greater investor confidence and long-term maturity across the broader crypto ecosystem.”

Risks Remain

Despite ByBit and major digital assets’ strong recovery, broader security risks in web3 remain. A new report from CertiK found that over $2.47 billion has already been lost to hacks, scams, and exploits in the first half of 2025 – surpassing total losses for all of last year.

Notably, almost 72% of the losses came from just two incidents – the Bybit hack and the Cetus exploit – however, the findings still highlight the need for better security across the industry.

“While the overall figures are alarming, it is important to point out that the majority of the funds lost in H1 were attributable to two concentrated, high-impact events,” said CertiK co-founder Ronghui Gu in a statement shared with The Defiant.

“But regardless, the results serve as another reminder to the industry that there is still much work to be done.”