Ethereum Exploit Triggers Polkadot Price Drop to $1.21

Hyperbridge Exploit Unleashes 1 Billion Counterfeit DOT Tokens

Security firm CertiK reported the exploit involving the bridged Polkadot token on Ethereum through the Hyperbridge gateway contract. According to CertiK’s alert, the attacker used a forged message to gain control of the DOT token contract administrator role. The attacker then minted 1 billion DOT tokens and sold them in a single transaction, generating approximately 108.2 ETH worth between $237,000 and $238,000.

The attacker altered the admin role before minting and liquidating the tokens, effectively hijacking the contract’s governance mechanism. This allowed the perpetrator to profit directly from the exploit without immediate detection.

DOT Price Crashes 7% in Minutes as Markets React

Following the exploit announcement, DOT fell sharply across major exchanges. The token dropped 7% within minutes of the incident, wiping nearly $20 million from Polkadot’s market capitalization as selling pressure intensified. DOT fell to approximately $1.15, representing a 4.8% decline from pre-exploit levels.

The rapid downward move triggered significant liquidations. Roughly $730,000 in DOT long positions were forced to close as prices dropped quickly. Popular market expert Colin Wu noted that losses remained relatively small due to low liquidity conditions during the incident. South Korean exchanges Upbit and Bithumb temporarily suspended DOT deposits and withdrawals as a precautionary measure.

Native Polkadot Network Remains Unaffected by Ethereum Bridge Hack

Polkadot clarified that the exploit affected only the Hyperbridge Ethereum gateway contract and the bridged DOT token on Ethereum. The native DOT token on the main Polkadot network and its parachains remained entirely unaffected by the incident. Hyperbridge operations were paused while the team investigated further.

This distinction proved critical for market confidence. The exploit targeted a cross-chain bridge rather than Polkadot’s core infrastructure, limiting systemic risk to the broader ecosystem.

Analyst Signals Potential Accumulation Zone Before Breakout

Crypto analyst Crypto Patel suggested DOT may be forming a technical structure similar to one preceding a previous 4,529% rally. According to the analyst, Polkadot has undergone a steep macro correction of nearly 98% from its previous all-time high above $55. DOT is currently consolidating within a high-time-frame accumulation zone between $1.10 and $1.30.

Crypto Patel noted that DOT has formed consistent lower highs and lower lows since the 2021 cycle peak and confirmed a bearish structure shift after breaking below key horizontal support near $3.20. A bullish trend would only be confirmed if DOT reclaims and holds above the $4.50 level. On the downside, a weekly close below $1.20 could invalidate the accumulation thesis and signal further downside risk.

Bridge Security Remains Under Scrutiny as Ecosystem Waits for Resolution

The Hyperbridge exploit highlights ongoing vulnerabilities in cross-chain bridge infrastructure. While Polkadot’s native network escaped unscathed, the incident underscores the risks of token bridging mechanisms. Investors await further investigation results and security patches before resuming normal trading activity on affected platforms.