Grayscale applies traditional finance models to AAVE, sees $175 value
Cointelegraph 2026-06-18 09:45:51
Context: Grayscale, a digital asset manager, has applied traditional finance valuation models to Aave's native cryptocurrency, AAVE, and sees a potential value of $175 under a one-year base-case scenario. This analysis is part of a broader effort by institutions to explore revenue-generating DeFi protocols. Grayscale's report used discounted cash flows, earnings multiples, and comparisons with banks and fintech companies to evaluate AAVE's value.
Key Facts
- Grayscale's analysis valued AAVE at $80 to $100, with a potential value of $175 under a one-year base-case scenario, based on an estimated $60 million in net income in 2026.
- Aave's revenue rose more than sixfold between 2023 and 2025, with the protocol operating at an estimated 50% margin, according to Grayscale's report.
- Grayscale used traditional finance valuation methods, including discounted cash flows, earnings multiples, and comparisons with banks and fintech companies, to evaluate AAVE's value.
- CoinShares, another asset manager, has taken a similar approach to valuing Hyperliquid's HYPE token and Ether (ETH), using protocol fees, buybacks, and other economic drivers to create long-term valuation frameworks.
- Standard Chartered forecasts that tokenized assets could lift DeFi assets to $2.7 trillion by 2030, with Uniswap positioned to become a major venue for tokenized markets.