# Taiko Token Price Drops Following $1.7M Bridge Exploit

**Published:** 2026-07-01T14:48:14.373Z  
**Topic:** Taiko  
**Sentiment:** neutral  
**Publisher:** TrendWatcher — https://www.trendwatcher.in/article/13eabe1c-dab3-4722-a329-e92e07c6859c

Taiko (TAIKO) price fell 11% to an all-time low after a $1.7M bridge exploit. The protocol has paused operations as it investigates the security breach.

Taiko’s native token (TAIKO) hit a fresh all-time low after the Ethereum-based rollup protocol confirmed a $1.7 million exploit of its bridge message-proof verification system [1]. The security breach prompted the project to halt block production and advise users that all deployed bridges are no longer secure, triggering an 11% decline in the token's value over the past 24 hours [1].

| At a glance | |
|---|---|
| Price | $0.07791 |
| 24h Change | -11% |
| Exploit Loss | $1.7 Million |
| Status | Bridges Paused |

## Security breach and market impact
The exploit originated from a vulnerability in Taiko’s chain state verification mechanism, which allowed attackers to forge message proofs [1]. These fraudulent proofs were accepted on Ethereum Layer 1 without corresponding events on the Taiko chain, enabling the unauthorized extraction of funds from the bridge and token vault [1]. While initial estimates from on-chain security firm Blockaid placed the loss at $1 million, subsequent analysis by PeckShield revised the total to approximately $1.7 million [1].

In response to the incident, Taiko temporarily stopped producing new blocks and fully suspended withdrawals via the L1 Bridge and ERC20Vault [1]. The protocol is currently coordinating with its Security Council and ecosystem partners to contain the breach and prepare a formal post-mortem report [1]. PeckShield reported that the attacker moved roughly 1.99 million TAIKO tokens—valued at approximately $169,702—to an address linked to the MEXC exchange, a move often associated with potential liquidation [1].

## Technical outlook
TAIKO’s price action has turned increasingly bearish as the token struggles to find support. Momentum indicators reflect this shift, with the Relative Strength Index (RSI) at 32, signaling that the asset is approaching oversold territory [1]. The Moving Average Convergence Divergence (MACD) lines have also entered the negative zone, reinforcing the downward trend [1]. 

Market participants are now monitoring whether the token can reclaim the $0.082 level or if it will continue to slide toward the $0.070 support zone [1]. A daily candle close below $0.070 could extend the decline toward $0.060, while a recovery would require the token to overcome selling pressure to reach the recent high of $0.098 [1].

## What to watch
*   **Support and Resistance:** Monitor the $0.070 level as a potential floor for further losses, and the $0.082 mark as a key efficiency level for a possible rebound [1].
*   **Attacker Liquidation:** Watch for further on-chain movement of the 1.99 million TAIKO tokens linked to the MEXC exchange, which could signal imminent selling pressure [1].
*   **Protocol Recovery:** Observe updates from the Taiko team regarding the post-mortem report and the potential resumption of bridge operations, which may influence market confidence [1].

The immediate challenge for Taiko remains the restoration of network security and the containment of the attacker’s remaining holdings. Whether the protocol can regain user trust depends on the efficacy of its remediation efforts and the speed at which it can safely resume operations.

## Sources
1. Invezz — [TAIKO hits all-time low as Taiko bridge exploit drains $1.7M](https://invezz.com/news/2026/06/22/taiko-hits-all-time-low-as-taiko-bridge-exploit-drains-1-7m/)
2. Bybit — [0.07791 | TAIKO / USDT | Taiko to USDT | Bybit Perpetual Contracts](https://www.bybit.com/trade/usdt/TAIKOUSDT)
3. CoinMarketCap — [0x Protocol price today, ZRX to USD live price... | CoinMarketCap](https://coinmarketcap.com/currencies/0x/)

---
Cite as: TrendWatcher, "Taiko Token Price Drops Following $1.7M Bridge Exploit", https://www.trendwatcher.in/article/13eabe1c-dab3-4722-a329-e92e07c6859c