The Grayscale Research Report believes that AAVE tokens are undervalued, and their fair value can rise to approximately $175 within a year

Grayscale Research has released a report stating that the current price of AAVE token at $75 is undervalued, and its fair value could rise to approximately $175 within a year. The report points out that DeFi protocols have generated nearly $25 billion in fees since 2023, and AAVE, UNI, and SKY are cash flow driven assets. Aave's agreement revenue has increased by over 6.6 times in the past three years, with an operating profit margin of approximately 50%. The report predicts that Aave will earn approximately $60 million in revenue by 2026. Based on a price to earnings ratio of 20-25 for fintech companies, the current fair value market value is $1.2-1.5 billion, corresponding to a token price of $80-100.