Aave rally makes DeFi lending look more like a bank to investors
Aave is being valued more like financial infrastructure than a typical DeFi token. AAVE rose sharply as investors weighed rising protocol scale, bank-style revenue potential, and reported strategic interest from Kraken’s parent in an Aave-related entity. Stani Kulechov clarified that protocol, GHO, and product revenue flow to AAVE via the DAO, not Aave Labs, so the key issue is how net revenue reaches the treasury after partner shares, incentives, and governance decisions. The market is testing whether a DAO-owned lending network can capture fees, allocate capital through buybacks, and serve institutional users while keeping economics token-native. Products like Horizon strengthen that case by showing traction in permissioned, RWA-based lending. But valuation remains fragile because gross activity is not the same as net DAO revenue, and centralized partners may increase distribution without making AAVE equivalent to corporate equity.
