Griffin AI: A Post-Hack Turnaround with a Discounted Valuation in a High-Growth AI-DeFi Niche

The cryptocurrency market has long been a theater of resilience and reinvention, where projects that survive existential crises often emerge with renewed vigor. Griffin AI (GAIN), a DeFi platform integrating artificial intelligence, exemplifies this dynamic. After a catastrophic cross-chain exploit in September 2024, the project executed a strategic relaunch in October 2025, addressing vulnerabilities and rekindling user trust. Today, Griffin AI occupies a unique position in the AI-DeFi niche, offering a valuation that appears misaligned with its utility-driven growth and market potential.

A Crisis and a Calculated Response

On September 24, 2024, Griffin AI suffered a $3.5 million loss due to a cross-chain exploit that exploited LayerZero's peer trust system, enabling the unauthorized minting of 5 billion $GAIN tokens, according to a Quillaudits analysis. This event triggered an 87% collapse in the token's value, as reported in a Quillaudits post. However, the team's response was swift and methodical: they shut down the compromised cross-chain connection, froze trading on exchanges, and launched a $2.5 million goodwill recovery and buyback fund, per a Griffin AI announcement. By October 2025, Griffin AI relaunched its token with a 1:1 swap for legitimate holders and a new liquidity pool on PancakeSwap. A full security audit by Hacken further reinforced confidence.

The relaunch prioritized transparency and user retention. Notably, 2,932 non-compromised self-custody wallet holders received a 1:1 airdrop of new GAIN tokens, signaling a commitment to rewarding loyal stakeholders. This approach mitigated reputational damage and preserved a core user base, which proved critical for subsequent growth.

User Growth and Utility-Driven Demand

Griffin AI's post-relaunch performance underscores its resilience. As of Q3 2025, the platform has powered over 15,000 live DeFi agents via its no-code Agent Builder, automating tasks like yield farming and cross-chain transactions, according to a CoinMarketCap forecast. This utility-driven model creates intrinsic demand for GAIN tokens, which are required to deploy agents and access premium features, a Yahoo Finance report notes.

The project's tokenomics also favor long-term stability. With 76.5% of the total supply locked, MarketCapOf data indicate downward price pressure is mitigated and the circulating supply remains constrained. This contrasts with many AI-DeFi peers, where high liquidity can exacerbate volatility. For instance, Ethena (ENA) has seen its TVL decline to $10.2 billion in Q3 2025, an FXStreet report notes, while Lido (LDO) and Aave (AAVE) maintain TVLs of $30 billion and $38.6 billion, respectively, per the project's CoinGecko page. Despite these giants, Griffin AI's market cap of $2.2 million, shown on its CoinMarketCap listing, appears disproportionately low relative to its user base and utility.

Valuation Mispricing in a High-Growth Niche

The AI-DeFi sector is experiencing rapid expansion, driven by institutional adoption and real-world asset (RWA) integration. Platforms like Chainlink (LINK) and Ethena are bridging traditional finance with decentralized protocols, yet Griffin AI's valuation remains a fraction of its peers'. For example, Chainlink's market cap stands at $14.9 billion, while Griffin AI's is less than 0.02% of that figure. This discrepancy suggests a potential mispricing, particularly given Griffin AI's niche focus on AI-powered DeFi automation.

Technical indicators and market sentiment further highlight this opportunity. The Fear & Greed Index currently reads 34 (Fear), according to CoinCodex data, suggesting undervaluation amid broader market pessimism. Meanwhile, the Altcoin Season Index at 72/100, as reported by MarketCapOf, indicates optimism for AI/DeFi narratives. Short-term volatility-such as the projected -24.73% drop in GAIN's price by November 2025-may present entry points for investors willing to bet on long-term utility, per a CoinEdition projection.

Risks and Considerations

While Griffin AI's trajectory is compelling, risks persist. The project's reliance on a single cross-chain infrastructure (LayerZero) remains a vulnerability, despite the Hacken audit noted in Griffin AI's announcement. Additionally, the AI-DeFi sector is highly competitive, with projects like C3.ai and BigBear.ai facing leadership and revenue challenges, per MarketCapOf. Investors must also contend with regulatory uncertainties and the inherent volatility of multi-exchange token launches.

Conclusion

Griffin AI's post-hack turnaround demonstrates operational resilience and a commitment to user-centric recovery. Its valuation, while modest compared to AI-DeFi leaders, reflects a discount that may not align with its utility-driven growth and strategic positioning in a high-growth niche. For investors with a medium-term horizon, Griffin AI offers a compelling case study in post-crisis reinvention-a project where the narrative of recovery and innovation converges with tangible metrics.