The founder of DeFiance Capital has recently stated that Aave, the dominant force in on-chain lending, is significantly undervalued by the market and possesses tremendous growth potential.
Arthur, the DeFiance Capital founder, highlighted that Aave currently holds the position of the largest and most rigorously tested lending protocol, boasting an impressive active loan volume of $7.5 billion, which is five times greater than the second-largest protocol.
Despite Aave’s key metrics, such as quarterly revenue, surpassing their 2021 bull run highs, its price-to-sales ratio remains at a three-year low.
Arthur attributes Aave’s strength to multiple moats, including its security record, network effects, exceptional DAO management, and multi-chain ecosystem presence. The forthcoming token economics upgrade is expected to further enhance the utility and value capture capabilities of AAVE tokens.
Moreover, factors such as the Aave V4 version, the introduction of crypto asset ETFs, and the expansion of the stablecoin market are anticipated to propel Aave’s substantial growth in the future.
