Grayscale Research, the cryptocurrency arm of the digital asset manager, has released a detailed analysis concluding that the native token of decentralized lending protocol Aave (AAVE) is currently undervalued. The report, published on June 16, 2026, applies a Discounted Cash Flow (DCF) model to project a fair value range of $80 to $100 for the token, while a more optimistic bull-case scenario targets $175 within the next year — a potential upside of roughly 130% from current trading levels around $75.
The valuation rests on Aave’s estimated $60 million in annual revenue. Grayscale’s analysts describe Aave as a stable DeFi project with transparent onchain financials, though they acknowledge headwinds such as the departure of core developers and a period of deposit outflows. The $175 target is not based on current fundamentals alone; it hinges on a scenario where increased regulatory clarity, particularly around tokenized real-world assets, accelerates platform adoption and fee generation.
The report also identifies four other tokens — Hyperliquid (HYPE), Uniswap (UNI), Sky (SKY), and Maple (MPL) — as exhibiting high investment value under similar cash-flow-based metrics. Notably, Grayscale filed to convert its Aave Trust into an exchange-traded fund (ETF) on NYSE Arca in February 2026, a move that could further lift the token’s profile. Despite the bullish forecasts, AAVE remains far below its 2021 peak of $662.
