Grayscale Research Sees AAVE Fair Value Rising to $175 Within One Year

Grayscale Research said AAVE’s fair value could rise to about $175 within one year, arguing the token is undervalued at its current price of $75. According to ChainCatcher, the report said DeFi protocols have generated nearly $25 billion in cumulative fees since 2023, framing DeFi as an asset class capable of producing real revenue. Grayscale described a spectrum of crypto assets ranging from commodity-like tokens to cash-flow-driven assets, and said AAVE, UNI, and SKY are closer to the cash-flow end of that range. The report said Aave’s protocol revenue has grown more than 6.6 times over the past three years, with an operating profit margin of about 50%. It projected Aave could earn about $60 million in revenue in 2026. Using a fintech valuation approach of 20–25 times price-to-earnings, Grayscale estimated a current fair-value market capitalization of $1.2–$1.5 billion, implying a token price of $80–$100. It added that clearer regulation that accelerates adoption of tokenized assets could lift AAVE’s fair value to about $175 within one year. Grayscale also noted that DeFi value accrual often occurs through mechanisms such as token burns, buybacks, rebates, and staking, and that protocol revenue alone is not sufficient to determine a token’s value.