Grayscale gives the conditions for AAVE to reach $175 in one year - Cryptopolitan

Crypto Insight Summary: * Grayscale values AAVE at $80–$100, noting it is currently trading below its baseline worth. * Improved regulations for tokenized assets could drive the price to a $175 “bull-case” target within a year. * Grayscale is pursuing an SEC-approved Aave ETF to attract traditional, regulated capital. **A recent valuation report released yesterday by Grayscale Research suggests that the Aave token is currently undervalued. The firm projects that if the regulatory environment becomes more favorable for the tokenization of real-world assets, the token’s price could reach approximately $175 within the next year.** The report, called [“A Guide to Buying the Dip: Valuing Crypto Using Cash Flows,”](https://research.grayscale.com/reports/guide-to-buying-the-dip-valuing-crypto-with-cash-flows) applies a discounted cash flow (DCF) model to Aave’s on-chain revenue, a technique borrowed from equity analysis and rarely used for digital assets. Grayscale’s analysts predict that Aave will pull in approximately $60 million in revenue this year. That cash-flow projection puts AAVE’s baseline fair value between $80 and $100. According to [CoinMarketCap data](https://coinmarketcap.com/currencies/aave/), AAVE has been trading around $77 as of today, which is lower than even the lower end of Grayscale’s estimated range. The gap between Grayscale’s $80 to $100 base case and the $175 bull case for Aave comes down to one variable: regulation. After launching the [Grayscale Aave Trust](https://www.cryptopolitan.com/aave-grayscale-bank-of-canada-backing/) in October 2024, they filed for an SEC-approved ETF in early 2026 that they could list on the New York Stock Exchange. Crypto Insight Analysis: Direction: Bullish AAVE Impact: Minor Impact Horizon: Long-term (1 quarter-1 year) Reasoning: Grayscale's valuation and ETF plans signal potential growth, but regulatory uncertainty limits immediate impact.