Grayscale Research has released a report suggesting that the AAVE token is currently undervalued at $75, with its fair value potentially rising to $175 within a year. The report highlights that DeFi protocols have generated nearly $25 billion in cumulative fees since 2023, positioning them as revenue-generating assets. Aave's protocol revenue has increased over 6.6 times in the past three years, with an operating margin of around 50%. Grayscale categorizes AAVE, UNI, and SKY as closer to cash-flow-driven assets. The report estimates Aave's revenue to reach $60 million by 2026, with a fair value market cap of $1.2–$1.5 billion, translating to a token price of $80–$100. However, with regulatory clarity potentially boosting the adoption of tokenized assets, AAVE's fair value could rise to $175. Grayscale also notes that DeFi value accrual involves mechanisms like burning, buybacks, and staking, beyond just protocol revenue.