Grayscale Says AAVE Undervalued, Sets $179 One-Year Price Target

Grayscale Research called Aaves AAVE token undervalued, estimating a fair value of $80 to $100 against a spot price of $77, based on discounted cash flow analysis. The asset managers base-case projection for AAVE is $179.11, supported by five key factors. Grayscale Maps Bear, Base, and Bull AAVE Price Targets The report highlighted Aaves categorization as a permissionless on-chain bank that generates recurring revenue. Grayscale estimates the protocol will generate roughly $60 million in 2026. Aaves revenue has increasingly been anchored by stablecoin activity rather than volatile crypto assets, providing a more durable earnings base as the protocol scales, the report read. Applying fintech multiples of 20x to 25x yields a fair value market cap of $1.2 billion to $1.5 billion. That range implies an AAVE price of $80 to $100. Grayscale also modeled three one-year outcomes. Its bear case is $90.91, the base case is $179.11, and the bull case is $270.57. Grayscale 1-Year AAVE Price Targets. Source: Grayscale The firms base case rests on five assumptions. It expects exponential growth in stablecoin and major Horizon partnerships.It also assumes previously withdrawn deposits return. The Aave App captures mainstream users in this scenario. Finally, institutions build on the V4 architecture, deepening liquidity and driving the protocol toward its $179.11 target. Where AAVE Stands Against Grayscales Targets AAVE currently trades around $77.23, with a market cap of about $1.17 billion. That figure sits just below Grayscales lower fair-value estimate. At that price, the base case implies a gain of roughly 132%. Aave (AAVE) Price Performance. Source: BeInCrypto Markets The firm also flagged Hyperliquid, Uniswap, Sky, and Maple with strong relative value.Meanwhile, the price targets arrive after Aprils Kelp DAO rsETH exploit hit the protocol hard. The breach drove a steep drop in Aaves total deposits. Even so, Grayscale said Aaves transparent handling of the crisis reinforced its institutional credibility.