Ethereum News Today: AERO’s Meteoric Rise Sparks Debate: Momentum or Melt-Up?

Aerodrome Finance’s AERO token has surged over 55% in the past week, reaching $1.42 and outperforming both the broader cryptocurrency market and Bitcoin during the same period. This rally follows a strategic integration with Coinbase’s Base network, which has driven significant attention and trading volume to the project. At peak levels, AERO’s 24-hour trading volume exceeded $656 million, a more than 200% increase from earlier in the week. The token is now valued at a market capitalization of approximately $1.2 billion, marking a dramatic turnaround in its trajectory since mid-July.

The recent price action appears to be fueled by Coinbase’s expanded DEX capabilities on its Base network, which now allows users to interact directly with AERO liquidity pools. This integration has exposed the token to Coinbase’s 100 million app users, significantly increasing its visibility and usage. The broader Base ecosystem has also seen a surge in activity, with total value locked (TVL) jumping 2.4% in 24 hours to $4.9 billion. This growing adoption of Base has benefited several high-profile tokens, including AERO, which now accounts for over $750 million in TVL on the platform.

However, the rally has not come without warning signs. Analysts have noted a negative divergence in AERO’s trading volume, which declined 23% to $162.41 million during Thursday’s price increase, suggesting reduced participation in the upward movement. This trend is further reinforced by a 16% drop in futures open interest to $97 million, indicating that traders are closing positions rather than committing new capital to the rally. Such patterns are often interpreted as a sign of waning conviction in the current price trend.

From a technical perspective, AERO faces critical levels that will determine the sustainability of its recent gains. A break above the $1.56 resistance level could pave the way for a move toward $1.85, but a failure to hold above the $1.31 support level could lead to a potential 25% decline toward $1.06. Large holders, however, continue to accumulate AERO tokens, reducing the available supply on exchanges and potentially offering a floor to the price during downturns. In the last 30 days alone, the token has generated $2.8 million in fees for veAERO holders, further reinforcing its role as a key liquidity provider on Base.

Looking forward, the token’s performance is closely tied to the overall health of the Base ecosystem. With daily active addresses on Base exceeding one million and a growing number of protocols building on the network, AERO’s role in facilitating trades and providing liquidity is expected to become increasingly vital. Analysts have highlighted that as Base gains further traction, AERO could see renewed upward momentum, especially if Ethereum and Bitcoin continue to show signs of recovery.

Source: [1] AERODROME FINANCE (AERO) PRICE RALLIES 15 FOLLOWING COINBASE BASE NETWORK PUSH (https://coincentral.com/aerodrome-finance-aero-price-rallies-15-following-coinbase-base-network-push/) [2] AERO CRYPTO PRICE FLYING +55% THIS WEEK: IS BASE SEASON COMING? (https://99bitcoins.com/news/presales/aero-crypto-price-flying-55-this-week-is-base-season-coming/) [3] BASE (ETH L2) BREAKDOWN BY @MILKROADDAILY: 4 KEY TRADING METRICS TO MONITOR NOW (https://blockchain.news/flashnews/base-eth-l2-breakdown-by-milkroaddaily-4-key-trading-metrics-to-monitor-now)