Aerodrome Finance’s token, AERO, has experienced a significant rally this week, reaching its highest point since May 9th as it surged to $0.7786. This marks a remarkable 177% increase from its lowest point in March, bringing its market capitalization to $619 million.
The surge in AERO price can be attributed to the announcement made by Coinbase, the largest American cryptocurrency exchange, regarding the integration of decentralized exchanges on its Base Blockchain into its main application. This move by Coinbase is expected to expose Aerodrome Finance to its vast user base of 10.8 million monthly active users, potentially leading to increased volume and revenue for the token.
This integration is reminiscent of Coinbase’s previous integration of Morpho, a competitor of AAVE, which offers decentralized borrowing and lending services. Data from Dune Analytics indicates that $550 million worth of Bitcoin has been collateralized for USDC on Coinbase through the Morpho platform.
Additionally, AERO price saw a boost as Aerodrome Finance’s network continued to dominate the decentralized exchange (DEX) industry on Base. Data from Defillama shows that the volume processed on the network has surged by 10 times in the past year, surpassing popular DEX platforms like Uniswap and PancakeSwap.
Furthermore, the number of AERO token holders has seen a significant increase, with Dune Analytics data revealing a rise to 629,954 token holders from 200,000 in January.
In terms of technical analysis, the AERO price has been on a slow uptrend since hitting a low of $0.2850 in April. The token has crossed above the 50-day and 200-day weighted moving averages, indicating bullish momentum. AERO has formed an ascending triangle pattern with a resistance level at $0.7786, coinciding with the 23.6% Fibonacci Retracement level. Both the Relative Strength Index and the MACD indicators are pointing upwards, suggesting the potential for further gains.
A clear breakout above the resistance level could propel AERO towards the 50% Fibonacci Retracement level at $1.3058, representing a potential 78% increase from its current level. Overall, the future looks promising for Aerodrome Finance’s token as it continues to gain traction in the crypto market.