20-25x P/E ratio compared to fintech, a target price of $175 implies double the potential, if the regulatory narrative materializes, this move won't be a loss.

Grayscale Research released a report stating that AAVE is undervalued at the current price level. The report estimates Aave's revenue this year to be approximately $60 million, and using a fintech company's price-to-earnings ratio of 20 to 25, the current fair value of AAVE is around $80 to $100. Grayscale believes that if regulatory clarity accelerates the tokenization of assets entering DeFi lending, the fair value of AAVE could rise to about $175 within a year. The report also categorizes AAVE, UNI, SKY, and others as more cash flow-driven assets, distinguishing them from Bitcoin and other assets with more commodity-like attributes.