Taiko Restores Cross-Chain Bridge 10 Days After $1.7M Hack, Token Price Jumps 136%

Taiko, the Ethereum layer-2 protocol, has fully restored its cross-chain bridge just 10 days after a $1.7 million exploit forced a temporary shutdown. The recovery included a multi-stage process capped by an independent security review, the team confirmed Thursday.

The TAIKO token caught fire in response, surging as much as 136% in recent trading. At press time, the token still traded sharply higher, though off the intraday peak.

The hack, disclosed on June 22, targeted Taiko's bridge – the mechanism that moves assets between Ethereum and its own rollup chain. Attackers drained roughly $1.7 million in ETH and other tokens. The team paused the bridge immediately after detecting the breach.

Reopening it took careful work. Taiko said it “completed a multi-stage recovery” that involved patching the vulnerability, testing the fix on a fork of mainnet, and then commissioning an outside security auditor to validate the patch. Only after that green light did the team fully restore bridge operations.

The speed of the fix is notable. Cross-chain bridge hacks have historically taken weeks or months to resolve, sometimes leaving funds frozen indefinitely. Taiko’s 10-day turnaround suggests the team had either a clear root cause early on or a backup plan ready to deploy.

Price action tells a similar story of confidence returning. TAIKO traded near $8 before the incident, dipped to around $4.50 during the outage, and has now recovered past the pre-hack level. The 136% spike from the low reflects both relief buying and fresh demand from traders who view the quick resolution as a positive indicator for the protocol's security posture.

Still, risks remain. The $1.7 million loss – roughly 0.3% of total value bridged on Taiko – has not been recovered. The team has not announced any compensation plan for affected users. And while the bridge is live again, the broader market will watch for any residual exploitation vectors.

For now, Taiko appears to have averted a classic crisis: a bridge hack that erodes trust and suppresses token price for months. The restoration, paired with the independent audit, gives traders a concrete reason to reassess the asset.

Watch for the next security update from Taiko, and for whether the token can hold gains above the $8 pre-hack resistance zone. If it does, the 10-day recovery narrative could continue to fuel upside. If it fails, the risk discount may creep back in.