Standard Chartered's head of digital assets research, Geoff Kendrick, has published his first research report on Aave, the leading decentralized finance lending protocol. The report sets a price target of $3,500 by the end of 2030, implying a roughly 50x gain from current levels.
At AAVE's current trading range of around $70–$76, the target suggests significant upside over the next few years. Kendrick explicitly stated that Aave is expected to outperform major cryptocurrencies like Bitcoin and Ethereum, positioning it as a top contender in the next bull run.
Surviving the Hack, Dominating as an On-Chain Bank
In April, Aave faced severe stress when a hacker exploited the rsETH bridge of KelpDAO, using approximately $290 million in stolen funds as collateral on Aave. This created a potential bad debt exposure of $230 million and triggered a brief depositor run. Kendrick noted that Aave has successfully weathered both the crisis and subsequent market share loss, with capital now returning rapidly. He described Aave as an "automated, blockchain-based bank" that operates without physical employees or human decision-making. At its peak in October 2025, Aave's total deposits reached $75 billion, a figure that would rank it among the top 30 U.S. banks by deposits.
RWA Tokenization: The Strongest Catalyst, Horizon Plan in Focus
Standard Chartered's bullish thesis hinges on the explosive growth of tokenized real-world assets. Kendrick projects a 37x increase in the value of tokenized assets deployed in DeFi by 2030. Since Aave's revenue is closely tied to borrowing activity and deposits on the platform, overall market expansion will directly drive AAVE's price.
Two key catalysts are highlighted: a potential restart of the AAVE token buyback program, and the "Horizon" initiative, which enables lending against tokenized RWA in a permissioned environment. This would significantly lower compliance barriers for traditional financial institutions, accelerating institutional adoption. Despite the current weak crypto market, Standard Chartered believes the overall asset price environment is improving, and Aave will be a prime beneficiary when capital flows back into DeFi.