Grayscale: The current price of AAVE is undervalued, and its fair value may rise to approximately $175 within a year.

Golden Finance reports that on June 18th, Grayscale Research released a report stating that the fair value of the AAVE token could rise to approximately $175 within a year, with the current price of $75 being undervalued. The report points out that DeFi protocols have generated nearly $25 billion in fees since 2023 and have become an asset class that produces real income. Grayscale categorizes cryptocurrencies along a spectrum from pure commodities to cash flow-driven assets, with AAVE, UNI, and SKY being closer to cash flow assets.
The report notes that Aave's protocol revenue has increased more than 6.6 times over the past three years, with an operating profit margin of about 50%. It estimates that Aave will earn approximately $60 million in revenue by 2026, and using a 20-25x P/E ratio typical of fintech companies, the current fair value market cap is $1.2 to $1.5 billion, corresponding to a token price of $80-100. If regulatory clarity accelerates the adoption of tokenized assets, the fair value of AAVE could rise to $175 within a year. Grayscale also points out that DeFi value accumulation is usually achieved through burning, buybacks, rebates, and staking, and that protocol revenue alone is insufficient to determine token value.
AAVE-1.87%
UNI-14.64%
SKY-0.31%
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