Kendrick compared Aave to a blockchain-based automated bank that operates without employees or discretionary decision-making. At its peak in October 2025, the protocol had approximately $75 billion in deposits, a level the analyst said would have ranked it among the 30 largest banks in the US.
Looking ahead, Kendrick expects the value of tokenized assets actively used in DeFi applications to increase 37-fold by the end of the decade. Because Aave’s revenue model is closely tied to lending activity and deposits, the bank anticipates that the protocol’s growth will translate relatively directly into profits for the AAVE token.
The report also noted the possible restart of Aave’s token buyback program as an additional catalyst. The protocol’s Horizon initiative, which is designed to support lending against real-world tokenized assets in a permissioned environment, could help attract traditional financial institutions and accelerate adoption.
Despite recent digital asset market weakness, the broader backdrop for cryptocurrency prices is improving and Aave is expected to be among the beneficiaries as capital returns to DeFi, the report added.
Aave is up 5.6% in the last 24 hours, trading around $76.
Read more: DeFi shaken by $292m hack, but showing resilience, says Standard Chartered
