$AAVE Once this theft event occurred, it can be basically concluded that AAVE is finished, and whether it recovers in the long term depends on how the project team and the ETH Foundation respond. Once a DeFi protocol is hacked once, most users will never deposit funds again, and it will face a risk of bank runs later. Referring to the previous theft of the DeFi protocol CETUS on the SUI chain, it was essentially a turning point from SUI's prosperity to decline. More than a year has passed since the incident, and SUI still hasn't recovered.

However, when a whale falls, all things grow; the collapse of AAVE instead gave $SKY ‌ and $MORPHO ‌ an opportunity. Especially MORPHO, with BlackRock entering the market, the project’s market share steadily increases, and it looks promising for the next bull market.