Aave’s price has declined significantly despite bullish institutional analysis from Grayscale and the Bank of Canada. Grayscale Research Head Zach Pandl called the protocol a potential “bank without bankers,” while a Bank of Canada report noted its lower net interest margin compared to traditional banks.
According to a report by Grayscale’s Head of Research, Zach Pandl, Aave (AAVE) could soon become a household name. Pandl called the project “a bank without bankers.” Pandl’s report also cites a Bank of Canada report which stated that “Aave has a significantly lower net interest margin (NIM) than major US and Canadian banks.”
However, despite this bullish outlook, AAVE’s price continues to dip. According to CoinGecko data, AAVE’s price has fallen nearly 5% in the last 24 hours, 4% in the last week, 16.1% in the 14-day charts, and 16.6% over the previous month. The asset is also down more than 86% from its all-time high of $661.69.
Grayscale anticipates the asset could see healthy gains, stating that “the combination of lower operational costs, attractive rates, and ‘always on’ banking could be a powerful combination for adoption and long-term growth.” Pandl further states that “Investing in the AAVE token can be considered a way to position for growth in the platform.”
