Grayscale applies traditional finance models to AAVE, sees $175 value

Written by Ezra Reguerrastaff writerReviewed by Yohan Yunstaff writerWritten by Ezra Reguerrastaff writerReviewed by Yohan Yunstaff writerGrayscale applies traditional finance models to AAVE, sees $175 valueLatest NewsPublishedJun 18, 2026Grayscale and CoinShares are applying traditional valuation techniques to crypto assets as institutions explore revenue-generating DeFi protocols.Aave's native cryptocurrency could reach $175 under a one-year base-case scenario as asset managers increasingly apply traditional finance valuation models to decentralized finance (DeFi) tokens, according to a new report by Grayscale Research.The digital asset manager said Aave could generate about $60 million in net income in 2026 and placed the token's current fair value at $80 to $100. The analysis used discounted cash flows, earnings multiples and comparisons with banks and fintech companies. Aave traded at $75 on Thursday, according to CoinGecko. Grayscale said Aave’s revenue rose more than sixfold between 2023 and 2025, while the protocol operates at an estimated 50% margin. It argued that Aave’s lending activity, GHO stablecoin and institutional products could support future earnings growth.However, protocol revenue alone doesn't guarantee token value, the research added. Fees may be paid to liquidity providers, used for operating costs or retained by a decentralized autonomous organization, while token holders generally lack legally enforceable claims held by shareholders. Grayscale's analysis applies valuation methods commonly used for equities, banks and fintech companies to a DeFi protocol, reflecting the firm's view that some crypto assets generate sufficiently measurable revenue and earnings to be evaluated using traditional financial frameworks.Cumulative DeFi fees. Source: Grayscale ResearchCoinShares applies long-term valuation models to HYPE and Ether CoinShares has taken a similar approach to Hyperliquid's HYPE token and Ether (ETH), using protocol fees, buybacks and…

Grayscale applies traditional finance models to AAVE, sees $175 value

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