Grayscale applies traditional finance models to AAVE, sees $175 value
Grayscale Research says Aave could reach $175 within a year in a base-case scenario, using traditional valuation methods such as discounted cash flow and earnings multiples. It estimates Aave could produce about $60 million in net income in 2026 and places current fair value around $80–$100. Aave’s revenue reportedly rose more than sixfold from 2023 to 2025, with about a 50% margin, supported by lending activity, the GHO stablecoin, and institutional products. The report also notes a key limitation: protocol revenue does not automatically translate into token value because fees can go to liquidity providers, operations, or a DAO, while token holders lack shareholder-like legal claims. This reflects a broader trend of applying equity-style valuation frameworks to DeFi tokens. CoinShares has used similar models for HYPE and Ether, while other institutions expect DeFi growth to accelerate as tokenization expands.
