Standard Chartered Sets Bold Price Target for Aave’s AAVE Token
Standard Chartered has recently initiated coverage of Aave, setting an ambitious price target of US$3,500 (AU$5,075) for its AAVE token by the year 2030. This target signifies a potential increase of around 50 times its current value, which hovers near US$70 (AU$101.50).
Geoff Kendrick, the bank’s head of digital assets research, has framed this target as a gradual ascent rather than a quick spike. In his projection, AAVE is expected to reach US$180 (AU$261) by the end of this year, followed by targets of US$600 (AU$870) in 2025, US$1,200 (AU$1,740) in 2027, and finally hitting US$2,200 (AU$3,190) by 2029, leading up to the ambitious 2030 target.
Anticipating DeFi’s Rebirth
Kendrick’s forecast is intricately linked to an anticipated revival in decentralised finance (DeFi) lending and the integration of real-world assets into the blockchain. According to Kendrick, the market for tokenised assets within DeFi is projected to soar to US$2.7 trillion (AU$3.92 trillion) by 2030, an impressive increase of 37 times.
Aave is likened to an automated on-chain banking system that profits from the difference between the interest paid to depositors and charged to borrowers. The model suggests that an increase in on-chain deposits and borrowing activities will drive the appreciation of the AAVE token. At its peak in October 2025, Aave attracted approximately US$75 billion (AU$108.75 billion) in deposits. Additionally, Standard Chartered noted the potential reinvigoration of Aave’s token buyback program as another positive catalyst, particularly with their Horizon initiative aimed at enabling institutions to lend against tokenised real-world assets in a regulated environment.
Navigating Challenges
Despite the optimism, the call comes on the heels of a significant exploit that previously impacted the Aave ecosystem earlier this year. Kendrick mentioned that the protocol has largely bounced back, as evidenced by the gradual return of deposits. The bank’s bullish outlook on AAVE is positioned alongside its long-term projections for the larger digital asset market, including a target of US$500,000 (AU$725,000) for Bitcoin and US$40,000 (AU$58,000) for Ether.
In summary, Standard Chartered’s positive outlook on Aave underscores the bank’s confidence in the future of DeFi, even as it acknowledges the existing challenges within the ecosystem. With significant growth expected in the use of tokenised assets in DeFi, Aave positions itself as a key player in this emerging landscape.
