In the crypto market, Bitcoin’s rally is now largely ETF-spot-based. As a result, this does not directly lead to liquidity flowing into altcoins—it provides only indirect benefits. However, DeFi hacks, for example, directly cause liquidity to exit altcoins from the system. That’s why the Aave hack based on KelpDao nearly set the market back by a full month. In such DeFi hacks, bridge misuse or smart contract exploitation are typically involved. The more bridges there are, the greater the risk.
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