Grayscale Calls Aave Undervalued with $1.2-$1.5B Market Cap Target

Grayscale Research has published a valuation report on Aave (AAVE), positioning the token as undervalued. The firm estimates that AAVE's fair value market cap sits between $1.2 billion and $1.5 billion, with a base case fair value of $80 to $100 per token.

The report projects AAVE will generate around $60 million in protocol revenue during 2026. Grayscale arrived at this estimate by applying fintech earnings multiples of 20x to 25x to the projected 2026 revenue, which is approximately $60 million.

The firm also identified a one-year bull case target of approximately $175 for AAVE, contingent on regulatory clarity around tokenized real-world assets entering DeFi lending. This scenario would accelerate tokenized RWA adoption in DeFi, which Grayscale believes could push AAVE's fair value to about $175 within a year.