Why AAVE crypto traders must watch $113 support after Binance hack

Aave is one of the largest decentralized lending protocols, and its V3 and V4 markets can be paused or restricted when risk controls tighten. Binance’s hot wallet breach is the latest event that touched Aave’s markets, and the protocol responded by lifting a precautionary freeze while still keeping some assets excluded from new borrowing activity. Traders watching AAVE also had to track price levels around the long-term moving average and the $113 area as the token moved through a weak market tape.

For users and builders, the practical issue is not only token price but whether lending pools remain fully open and what collateral can still be used. When nine assets, including the two biggest stablecoins, cannot back new loans, borrowers may need to shift collateral plans or wait for access to widen again. That changes how quickly liquidity can move through Aave, and it puts extra weight on risk parameters rather than just market sentiment.