Aerodrome Finance Drops 7.216% Despite Coinbase Integration Boost

Aerodrome Finance's latest price was $0.7076, down 7.216% in the last 24 hours. The decentralized exchange (DEX) has recently made significant strides, particularly on the Base blockchain. The network's volume has surged tenfold in the past year, surpassing the $100 billion mark and outpacing competitors like Uniswap and PancakeSwap. This growth is attributed to the increasing number of token holders, which has risen from 200,000 in January to 629,954, indicating a growing user base and interest in the platform.

One of the key developments driving Aerodrome Finance's success is its integration with Coinbase. This integration will expose Aerodrome to Coinbase's 10.8 million monthly active users, potentially boosting its volume and revenue. The integration is seen as a strategic move similar to Coinbase's previous integration of Morpho, an AAVE rival that facilitates borrowing and lending in a decentralized manner. This move is expected to enhance the accessibility and usability of Aerodrome Finance, allowing users to trade millions of assets on-chain and have significant control over their crypto assets.

The integration with Coinbase has sparked renewed interest in Aerodrome Finance, with speculative traders entering the market following the announcement. This has led to a surge in buying activity, as evidenced by the spike in Buy Volume to 36 million AERO. The integration is viewed as bullish by many users, driving more investors to enter the market and scoop up Aerodrome tokens. The increased market engagement is also reflected in the trading volume, which soared 35.3% to $389 million, signaling renewed market engagement.

However, the rally in Aerodrome Finance is not without its challenges. Many investors and holders have taken the recent gains as an opportunity to take profit, leading to a higher exchange inflow and potential downward pressure on prices. In derivatives markets, sentiment leaned bearish, with AERO’s Open Interest surging 64.2% to hit an all-time high of $55 million, reflecting increased futures participation. Most of that interest is skewed short, with 56% of positions shorting AERO, indicating strong bearish sentiments. The Funding Rates also indicated that most of these entering Futures contracts were going short, reflecting a negative outlook on the token's future performance.

Despite the challenges, Aerodrome Finance remains strong on the intraday trading and looks ready for a massive rally following a new bullish formation. The latest bullish signal is supported by the $0.47 level, and if it continues to play out, we can expect a major increase in the coming days. Surpassing the previous high should validate a big price movement in the future. However, if Aerodrome Finance fails to advance higher, a dip below last week’s low could trigger a fresh breakdown to the yearly low before deciding where to head next. For now, the market is still in favor of the bulls, with key resistance levels at $0.8, $1, and $1.5, and key support levels at $0.56, $0.47, and $0.375.