Hi
If I was you I would do grades! The sheer anxiety of an exam takes the level of your playing up! I'm an adult now, but I had viola lessons up until 18, where I managed to pass grade 7. I learnt the piano, guitar, drums and bass for fun until last year, when I realised I wanted to teach and needed a piece of paper. So far I passed grade 5 on drums and guitar. Failed grade 8 bass, but I'll retake that. I will also do grade 7 piano.
In summary I would say you never know who you are competing against, so best to have a piece of paper behind you!
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