Crypto Hack: Polkadot Price Crashes 4% Amid Major Exploit on Ethereum

DOT, the native cryptocurrency of Polkadot, has dropped 4% over the last 24 hours following a major exploit on Ethereum. According to reports, the attacker created 1 million DOT tokens following the exploit. As a result, Polkadot price is facing strong selling pressure in the market.

Polkadot Price Drops Amid Major DOT Token Exploit

CertiK reported an exploit involving the bridged Polkadot token on Ethereum through the Hyperbridge gateway contract.

According to CertiK, the attacker used a forged message to gain control of the Polkadot token contract administrator. The attacker then minted 1 billion DOT tokens and sold them in a single transaction.

The sale generated approximately 108.2 ETH, valued at around $237,000 to $238,000. Following the exploit, DOT fell 4.8 percent to about $1.15 as the news spread. CertiK stated that the attacker altered the admin role before minting and liquidating the tokens, allowing them to profit from the exploit.

Polkadot Price Under Selling Pressure

Following the recent exploit, Polkadot price experienced sharp volatility, with the DOT token falling 7% within minutes of the incident. The sudden decline wiped nearly $20 million from Polkadot’s market capitalization as selling pressure intensified across markets.

The rapid move also triggered liquidations, with roughly $730,000 in DOT long positions forced to close as prices dropped quickly. Popular market expert Colin Wu reported that losses from the recent Polkadot exploit remained relatively small due to low liquidity conditions during the incident.

Following the exploit, South Korean exchanges Upbit and Bithumb temporarily suspended deposits and withdrawals of DOT as a precautionary measure.

On the other hand, Polkadot stated that the issue affected the Hyperbridge Ethereum gateway contract. The team clarified that only the DOT token bridged to Ethereum via Hyperbridge was impacted.

Polkadot added that native DOT, the main Polkadot network, and its parachains remain unaffected. Hyperbridge operations have been paused while the team conducts further investigation into the incident.

Is This The Final DOT Price Drop Before Rally?

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

Crypto Patel noted that DOT has been forming consistent lower highs and lower lows since the 2021 cycle peak. The asset also confirmed a bearish structure shift after breaking below key horizontal support near $3.20.

Crypto Patel stated that 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.