Standard Chartered's head of digital asset research, Geoff Kendrick, published a report setting a $3,500 price target for AAVE by 2030, implying a 50-fold gain from the current ~$76 level. The projection hinges on the expansion of DeFi lending and the tokenization of real-world assets (RWA).
Gradual Price Roadmap
Kendrick outlined a step-by-step trajectory: $180 by end-2026, $600 by late 2027, $1,200 by end-2028, $2,200 by end-2029, and $3,500 by 2030. Aave's decentralized protocol eliminates traditional intermediaries via smart contracts, with all transactions on-chain, fostering a permissionless financial environment.
Recovery After Security Incident
In April, attackers exploited a LayerZero bridge vulnerability, draining roughly $292 million in rsETH. Some of these funds were used as collateral on Aave, exposing the protocol to up to $230 million in risk. Total deposits dropped and lending activity slowed; Aave paused the rsETH pool. However, Kendrick noted the protocol has shown signs of regaining balance.
RWA Tokenization as Key Driver
Standard Chartered's bullish case centers on RWA tokenization, estimating the market could grow 37-fold to reach about $2.7 trillion by 2030. Aave's revenue model relies on lending volume and deposits, so tokenized asset expansion could directly boost protocol earnings. Aave Horizon, a permissioned lending framework for institutions, already has $163 million in outstanding loans (as of late May), while the broader RWA ecosystem is valued at nearly $30 billion.
Market Outlook and Alternative Forecasts
The report also highlights Aave's native stablecoin GHO, which has grown to $600 million in outstanding supply since its 2023 launch, with all fees retained by the protocol. On the price front, AAVE bounced from the $58–60 range in June to around $76, gaining 6.5% in 24 hours. The 4-hour chart still shows a weak trend, with $75.50–76.00 as a key resistance level; a breakout could target $78–80. Separately, Grayscale Research pegs AAVE's intrinsic value at $75 and suggests that with regulatory clarity and faster tokenized asset adoption, fair value could reach $175 in 12 months.