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 the bullish outlook from Grayscale and the Bank of Canada, AAVE’s price continues to dip. Let’s discuss what’s going on.
AAVE Price Dips Despite Grayscale And Bank Of Canada Backing
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’s price is also down by 28.7% since April 2025 and more than 86% from its all-time high of $661.69, which it attained in May 2025, nearly five years ago.
AAVE’s price dip may be due to a host of factors. Firstly, the crypto market has seen substantial outflows since October of last year, arising from macroeconomic uncertainties and geopolitical tensions. Market participants began a risk-off approach with their investments, leading to a dip in the crypto market.
The current market scenario is quite bearish and investor confidence has not returned to normal levels. The US-Iran conflict, despite the ceasefire, has also added fuel to the fire. Although Grayscale and the Bank of Canada’s backing is quite a bullish development, it is not enough to pivot investors from safe havens.
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However, AAVE’s future seems quite bright. Grayscale anticipates the asset to 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.“
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