Over the last four consecutive days, Aerodrome Finance (AERO) has been in an upward trend, which continued into the weekend.
AERO is up 13% over the past seven days, with hype growing amid the upcoming upgrade aimed at making the platform multi-chain. How will this decision affect AERO’s holder revenues, TVL and price performance?
Impact on holder revenues and TVL
Aerodrome Finance is built and operates entirely on a single chain, which is Base. However, the team announced that it will launch a cross-chain decentralized exchange (DEX) in July, which is expected to improve revenue, among other measures.
Even though it operates on a single chain, the platform leads in terms of holder earnings over the past month.
Aerodrome brought in $7.4 million per month for its holders, according to DefiLlama. This was more than double that of Uniswap (UNI), which operates on 43 chains with a figure of $3.3 million.
Hyperliquide (HYPE), which also operates on a single chain, followed AERO with $1.37 million. PancakeSwap (CAKE), which is built on BNB Chain but can accommodate around 10 chains, and Pharaoh Exchange and Raydium (RAY) are in the top 6 list.
Such a move to upgrade the platform to a multi-chain DEX is expected to increase holders’ revenue as the user base grows.
Additionally, the total value locked (TVL) on the base channel could continue to grow faster with this launch. Currently, the TVL is approaching $5 billion since its launch.
This discussion around cross-chain DEX is about strengthening revenue, TVL, and altcoin price. But can price action maintain the uptrend even as token unlocking looms?
Will the next token unlock affect the price of AERO?
On the charts, the altcoin broke out of a sideways market that had held AERO since early February. Over the past 14 days, only two days closed in red, indicating the altcoin’s bullish strength.
Maintaining a position above the range between $0.2794 and $0.385 increases the potential to reach $0.600. However, challenges lie at $0.450, $0.500, and $0.550 but the MACD was bullish alongside the RSI divergence indicator.
The DEX launch was optimistic as it brought more trading volume and liquidity to the AERO pool through the support of multiple chains.
Conversely, a slight drop in prices can be anticipated, even if it is not certain. Indeed, the upcoming $1.32 AERO token unlock in approximately five days has not had a significant impact on the circulating supply.
Final summary
- AERO leads DEX platforms in terms of holder revenue, with the launch of a cross-chain DEX intended to amplify revenue and TVL.
- The price was trading around $0.600, and the upcoming token unlock is not expected to significantly affect the supply.
