Grayscale Predicts Aave Token Could Hit $175 Within a Year

Grayscale Research has released a report that estimates Aave's native token AAVE could reach $175 within a year, based on revenue growth and traditional valuation models. The firm applied discounted cash flows, earnings multiples, and comparisons with banks and fintech companies to arrive at this projection.

The report highlights three areas driving Aave's revenue growth: its core lending activity, GHO stablecoin, and growing institutional products. Grayscale sets AAVE's current fair value between $80 and $100, based on a projected net income of about $60 million for 2026.

While traditional valuation methods are used, the report notes that protocol revenue does not automatically translate into token value, as fees may go to liquidity providers or cover operating costs. Token holders lack legally enforceable claims like equity shareholders in traditional companies.