🩸$AAVE at $89, did you buy the dip?

Four days ago, it was hacked, with bad debts reaching up to $230 million, TVL plummeting by 8 billion, WETH frozen, a bank run, panic selling— all the risks exploded within a day. But in the past 4 hours, the price rebounded strongly from the low of $89 to $95, with a trading volume of 13.37 million USDT instantly surging.
Is this a drained corpse, or the last tough nut in DeFi?
First, look at the surface: the bleeding hasn't stopped.
In mid-April, Kelp DAO was hacked for $293 million. The hacker exploited a vulnerability to mint fake rsETH, deposited it into Aave to borrow real WETH, directly causing bad debts of $190 million to $230 million. The consequences were WETH frozen, a large-scale bank run, TVL crashing from 26.4 billion to 18.6 billion, with an outflow of 8.4 billion in just one week.
If you hold AAVE, you watched it drop from $115 to $89 in two days—a 22% decline, with headlines everywhere saying “Aave is doomed.”
But the turnaround came too quickly, with three cards revealed:
First, the Ethereum Foundation came to the rescue.
Just when everyone thought it was collapsing, the Ethereum Foundation directly deposited $48 million worth of ETH as a backstop. Aave also quickly launched a $1 billion redemption protocol, forcibly stabilizing the liquidity crisis.
Second, the DAO passed a major proposal called “Aave Will Win.”
With 75% high votes, 100% of brand product revenue goes into the DAO treasury, plus an additional $25 million stablecoins and 75k AAVE tokens allocated for V4 development. The GHO stablecoin cross-chain expansion is imminent, with the risk model fully upgraded.
Third, the fundamentals haven't collapsed at all!
TVL remains steady at $16.4 billion, still holding the top spot in lending. Annualized revenue is $648 million, with a net profit of $53 million over 30 days. Meanwhile, AAVE’s market cap is only $1.42 billion, with MCap/TVL dropping to a historic low of 0.086! Even top institutions like Dragonfly have spoken: Aave’s capital is enough to cover bad debts.
On one side, hackers are stabbing, bad debts looming; on the other, giants are rescuing, fundamentals remain strong.
$89–86 is the last bottom line for bulls and bears!
🎯 Trading strategy:
Short-term traders: Buy in batches around the current price of $93–$95, set a stop-loss at $85, and run unconditionally if broken. First target: $110, second target: $130.
Long-term players: This is the golden pit we've waited two years for! Buy in batches below $89 with eyes closed, and boldly add positions if it drops below $80. Remember this formula: V4 implementation + bad debt resolution = the absolute main theme of the next DeFi bull market.
When others panic, I am greedy. The end of DeFi is still Aave. Do you dare to take this hit?
$AAVE