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The Bybit hack that saw over $1.4 billion siphoned last week had a major impact on the price of Ethereum (ETH). As the only digital currency involved in the attack, the price of Ethereum dropped as low as $2,619 in the past seven days as investors nursed sell-off fears. However, a new update from Bybit has restored confidence in the coin today.
Bybit Ethereum reserve restored
Meanwhile, Bybit exchange said it has successfully closed the shortfall of the Ethereum reserve. In an earlier post, data analytics platform Lookonchain revealed that the trading platform received approximately 446,870 Ethereum worth about $1.23 billion. Since the hack, ecosystem partners have loaned Bybit, with some whale transactions and direct ETH purchases recorded.
Dan BurginIn response to this update, CEO Ben Zhou confirmed that the exchange has closed the ETH gap. He said a newly audited report will be published to show that the trading platform is again back to 100% on its Ethereum balances. Per his words, Bybit can now make a 1:1 redemption on the client’s assets, as evident through a Merkle tree verification.
Many people have commented on the new update, hailing Zhou for surviving a major bank run. The Bitwise head of Alpha Strategies said Bybit succeeded where FTX could not, a sign of a stronger crypto collective.
Ethereum price back on track
The price of Ethereum has returned to the level it was at before the crash. Per data from CoinMarketCap, ETH's price changed hands for $2,727, down by 3.24% in 24 hours. The coin lost more than 8% of its price following the Bybit hack, with the current outlook showing evidence of its recovery.
Alex DovbnyaBefore the exploit, the coin was on track to reach $3,000, riding on the news that the U.S. SEC is dropping the Coinbase lawsuit as soon as this week. With the latest assurance of a boost in Bybit operations, the coin may retrace its growth steps in pursuit of the $3,000 breakthrough.
Dan Burgin
Vladislav Sopov