PANews, June 18 — Grayscale Research released a report stating that it believes the fair value of the AAVE token could rise to approximately $175 within one year, and that the current price of $75 is undervalued. The report noted that DeFi protocols have generated nearly $25 billion in cumulative fees since 2023, making them an asset class that produces real revenue. Grayscale categorizes crypto assets along a spectrum from pure commodities to cash-flow-driven assets, with AAVE, UNI, and SKY being closer to cash-flow assets.

The report pointed out that Aave’s protocol revenue has grown more than 6.6x over the past three years, with an operating margin of approximately 50%. The report estimates that Aave will earn about $60 million in revenue in 2026. Based on a 20–25x P/E ratio for fintech companies, the current fair value market cap is $1.2–$1.5 billion, corresponding to a token price of $80–$100. If regulatory clarity accelerates the adoption of tokenized assets, AAVE’s fair value could rise to $175 within one year. Grayscale also noted that DeFi value accrual is typically achieved through burning, buybacks, rebates, and staking, and that protocol revenue alone is insufficient to determine token value.