Gray-scale Research: AAVE Token’s Current Price Has Valuation Support; Reasonable Price in Base Case Scenario Could Reach $175 Within One Year
GreyScale Research’s report states that as the valuation framework for crypto assets gradually aligns with traditional financial analysis, decentralized finance (DeFi) protocols with clear cash flows and robust token value-capture mechanisms are attracting increased attention. Using Aave as an example, the report notes that Aave—the leading on-chain lending protocol—generates revenue primarily from lending spreads, treasury yields, and GHO-related activities (GHO being its native stablecoin). Following continuous improvements to its governance mechanism, the linkage between the protocol’s economics and the value accruing to AAVE token holders has strengthened.
