- AERO has jumped +1,200 over the past year.
- Core growth has been the biggest driver – will the trend continue?
Aerodrome Crypto (AERO) has seen massive growth thanks to the wild expansion of Base, an Ethereum (ETH) L2.
Aerodrome is a strategic central liquidity provider in the core ecosystem, operating as a decentralized exchange (DEX) and automatic market maker (AMM).
The growth of L2 has been a huge catalyst for the protocol. In 2024, Base TVL (total value locked) increase 6x (from $500 million to almost $3 billion).
During the same period, Aerodrome Finance’s TVL grew from $100 million to over $1.3 billion (13x).
Its native token, AERO, has perhaps been the most notable beneficiary. On an annual basis, AERO grew by +1,200%. Given the additional growth expected for Base, should you include it in your watchlist?
The potential of AÉRO
Source: AEROUSD, TradingView
AERO saw recovery gains of more than 140% during the broader market rebound in September. However, it faced price rejection between $1.3 and $1.5 (red, supply zone).
However, the decline was halted when short-term demand was near $1.2, making it a crucial level to watch.
A prolonged uptrend to $1.5 could trigger a 36% rally. A more aggressive push toward $2 could yield potential gains of nearly 100%.
The main technical chart indicators showed sufficient room for growth as they were far from overbought conditions.
However, market uncertainty and volatility could erupt just days before the US elections. A breach below $1.2 could still offer a reduced bid to $0.8.
Occasional request on weekends
Source: Coinglass
Read Aerodrome Finance (AERO) Price Prediction 2024-2025
The latest 18% rally over the weekend was primarily driven by spot demand, as evidenced by a rise in spot CVD (Cumulative Volume Delta).
The metric tracks the difference between buying and selling volume. The spike means an increase in buying volume, hence bullish sentiment.
However, interest in the futures market has declined slightly, as evidenced by the nearly 1 million AERO drop in open interest (OI) rates. If the decline continues, the move to $1.5 could be delayed.
Disclaimer: The information presented does not constitute financial, investment, business or other advice and represents the opinion of the author only.
