The analyst Hitesh Malviya believes that Aave's token ($AAVE) is undervalued compared to traditional banks and could potentially reach a valuation of over $1,000. He notes that Aave's net deposits and fees on its decentralized finance platform have shown significant growth in 2024. Aave's net deposits increased from $12 billion to over $36 billion within 12 months, while fees reached $24 million by year-end. Malviya highlights Aave's growing relevance as adoption of decentralized finance increases and traditional finance users seek higher yields, self-custody, and transparency. He compares Aave's valuation-to-deposit ratio to that of HDFC Bank in India, suggesting that regulatory clarity in the U.S. could drive institutional adoption and align Aave's valuation with traditional banking standards. Aave's consistent growth trend, ability to attract deposits, and cost efficiency set it apart in the decentralized lending space. The sharp rise in deposits and fees in late 2024 reflects increased market confidence, and Malviya sees further growth potential for Aave if its lending business expands and it maintains its position as a DeFi leader amidst evolving global regulations.



Other News from Today