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