**Dubai, United Arab Emirates, April 9th, 2025, Chainwire**
Bybit, the world’s second-largest cryptocurrency exchange by trading volume, has successfully played a pivotal role in restoring market stability and regaining significant trading volume after the largest hacking incident in crypto history. An in-depth liquidity analysis conducted by Block Scholes reveals that the exchange took comprehensive steps to protect its marketplace’s liquidity during this crisis, and these efforts proved effective even amid challenging macroeconomic conditions.
The case study sheds light on the immediate effects of the incident and Bybit’s impressive recovery, exploring technical indicators and trading data while comparing Bybit to its peers as liquidity returned following the initial panic. In hindsight, the exchange faced only “a sharp but brief disruption in volumes and order book depth,” with key market metrics showing a strong recovery within weeks of the incident. After experiencing a dip attributed to both the hack and the broader market downturn, Bybit managed to reverse its trajectory and nearly doubled its market share from its lowest point post-hack.
The report noted, “While the hack triggered a sharp but brief disruption in volumes and order book depth — particularly in the BTC and ETH markets — bid-ask spreads across major tokens remained largely intact.” Thanks to the timely introduction of Retail Price Improvement (RPI) orders, Bybit was able to stabilize liquidity conditions and start rebuilding its share of overall crypto spot trading.
**RPI: Enhancing Order Books and Spreads for Retail Traders**
Block Scholes’ analysis emphasizes the importance of Bybit’s Retail Price Improvement (RPI) mechanism in the exchange’s quick recovery. Launched just days before the security incident, RPI orders offer Bybit users a specialized liquidity tool tailored specifically for retail traders using Bybit’s interface. Unlike traditional orders, RPI orders create a unique liquidity pool that is accessible only to manual retail traders, effectively excluding institutional and algorithmic traders who utilize API channels. This setup allows retail traders to potentially secure better prices than larger institutional traders when buying or selling.
This segmentation provides individual traders with a distinct advantage, diversifying the exchange’s sources of capital inflows. As a result, this innovative approach led to significantly deeper order books and tighter bid-ask spreads for everyday traders. According to the report, RPI orders quickly made up a substantial portion of liquidity in major assets like BTC, ETH, SOL, and DOGE, with data indicating they accounted for over 50% of the order book depth at 5–10 bps from the mid-price, and up to 30% within 5 basis points. Bybit was the first crypto exchange to prioritize retail access through this liquidity enhancement, further featuring 3-stall liquidity—three levels of depth for traders.
