Grayscale Research has released a report indicating that AAVE is undervalued at current levels. The report argues that the token's price should be between $80 and $100, using discounted cash flow analysis and comparable valuation multiples. This estimate assumes Aave will generate approximately $60 million in revenue this year and applies fintech-style multiples of 20 to 25 times protocol earnings.
The estimated fair-value market capitalization is around $1.2 billion to $1.5 billion. Grayscale also modeled a range of outcomes, including a bear case that places AAVE near $90.91, a base case at $179.11, and a bull case reaching $270.57.
The report highlights Aave's position as the leading decentralized lending protocol, which supports its thesis. Aave has become an essential part of DeFi infrastructure, allowing users to borrow and lend crypto assets across multiple blockchains without relying on centralized intermediaries.