Grayscale Report: Aave's Protocol Revenue Surges 6.6x Over Three Years, AAVE Valuation Considered Conservative

ChainCatcher report: Grayscale Research’s latest report indicates that, as the leading protocol in the DeFi lending space, the fair valuation range for the AAVE token is currently $80–$100. The report notes that Aave’s protocol revenue grew more than 6.6 times between 2023 and 2025, with a current operating margin of approximately 50%, leaving room for further improvement as scale increases. The Aave DAO treasury peaked at $360 million, providing ample capital for protocol development. Grayscale believes that AAVE’s current price of around $75 implies only a modest annualized revenue growth rate of about 9% over the next decade—a relatively conservative expectation. If Aave achieves 25% annualized revenue growth, the implied price could reach $227; if it reaches 35%, the price could rise to $444. However, the report also emphasizes that Aave’s future performance will depend on the competitive landscape of DeFi lending, regulatory clarity, and progress in stablecoin and RWA tokenization initiatives.