What could affect the price of AERO?
Aerodrome Finance is navigating the ups and downs of the altcoin market with important protocol updates and growing support from exchanges.
- Emissions Policy Change – A governance vote coming up could cut the annual supply growth by 52% (Bitrue)
- Coinbase Integration – Launching a full decentralized exchange (DEX) to over 100 million users is expected to boost adoption (CoinDesk)
- Altcoin Market Volatility – As a high-risk token, AERO is experiencing price swings of up to 40% weekly amid sector shifts
Deep Dive
1. Protocol Emissions Overhaul (Positive Outlook)
What’s happening:
Aerodrome’s governance system, active since Epoch 67, allows veAERO token holders to vote weekly on emissions rates, which currently stand at 0.52% annually. If the vote favors reducing emissions, this rate could drop to 0.26%, cutting new token supply from 5.2 million to 2.6 million per week at the current price of $1.24.
Why it matters:
Lower emissions mean fewer new tokens flooding the market, which reduces selling pressure from liquidity mining rewards. At the same time, the protocol plans to keep annual percentage rates (APRs) attractive by redistributing fees fully to token lockers. Similar changes helped Velodrome V2’s price rise by 37% in early 2024.
2. Base Network Leadership (Mixed Impact)
What’s happening:
Aerodrome controls 55% of the daily decentralized exchange volume on the Base network, which totals $1.17 billion (AerodromeFi). However, it faces growing competition from Uniswap v4 and PancakeSwap v4.
Why it matters:
Being the market leader gives Aerodrome a strong position as Base’s total value locked (TVL) grows by 240% this year. But lower swap fees (0.01% compared to Uniswap’s 0.3%) mean Aerodrome needs high trading volume to maintain profitability.
3. Increased Risk from Derivatives (Potential Downside)
What’s happening:
Open interest in perpetual contracts reached $103 million on September 19, more than four times the level from early August. Funding rates turned negative, indicating traders are betting against the $1.30 price resistance.
Why it matters:
With average leverage at 25x, there’s a risk of sharp price moves if liquidations occur. Most liquidations happen between $1.18 and $1.32, but if the price falls below $1.10, thin order books could cause swings of 15-20%.
Conclusion
AERO’s future depends on how well emissions are managed and how quickly Base network adoption grows. If governance succeeds, the token could retest its all-time high of $1.57 by October. On the other hand, a drop below $1.10 might lead to profit-taking. It will be important to watch how many veAERO holders participate in voting during this critical period, as currently 38% of the supply is locked.
What are people saying about AERO?
The Aerodrome Finance (AERO) community is seeing a mix of excitement and cautious profit-taking. Here’s what’s making waves right now:
- Coinbase integration boosts liquidity – AERO’s price jumped 30% in August
- Big investors are stepping in – $16 million flowing in despite signs the price might be overheated
- Debate over token emissions – Potential supply cuts versus delays in governance decisions
Deep Dive
1. @AerodromeFi: Coinbase DEX drives adoption
“If it’s on Aerodrome, it’s on Coinbase” – upgrades to the liquidity page and integration with Coinbase’s Base network have pushed total value locked (TVL) to $553 million.
– @AerodromeFi (253K followers · 1.2M impressions · August 9, 2025)
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What this means: This is a positive sign for AERO as Coinbase’s 8 million+ users now have easier access. However, the Relative Strength Index (RSI) at 72.48 (as of August 20) suggests the price momentum might be overheating.
2. @MOEW_Agent: 638,000 holders support DeFi growth
“Market cap hits $2.1 billion... vote-locking features help sustain growth.”
– @MOEW_Agent (89K followers · 420K impressions · August 12, 2025)
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What this means: The use of veAERO governance tokens is creating steady demand, which is good for long-term growth. Still, the price has dropped 9.32% over the past 30 days, indicating the market might be taking a breather.
3. @DiarioBitcoin: Ongoing debate over emissions policy
“SYND adds $60 million in voting power – cutting emissions could reduce supply by 22%.”
– @DiarioBitcoin (310K followers · 680K impressions · September 15, 2025)
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What this means: This is a mixed picture. If emissions are cut, it could reduce selling pressure and support prices. But delays in making decisions might frustrate liquidity providers who rely on yield.
Conclusion
The overall outlook for AERO is optimistic but cautious. The Coinbase DEX integration and $16 million inflows from large investors are strong positives. However, technical indicators like the high RSI and uncertainty around emissions policy suggest some risks remain. Keep an eye on the $1.30 resistance level—if AERO closes above this, it could confirm a move toward $2 (Bitrue). If it fails, we might see profit-taking that pushes the price back toward $1.10 support.
What is the latest news about AERO?
Aerodrome Finance is gaining momentum thanks to its partnership with Coinbase and active governance discussions, but it still faces challenges from the overall market. Here’s the latest update:
- Emissions Policy Overhaul (September 16, 2025) – A proposal to reduce token supply has sparked speculation that AERO’s price could reach $2.
- Coinbase DEX Integration (August 9, 2025) – Over 100 million Coinbase users can now access Aerodrome’s liquidity pools directly.
- Swap Fees Reach $250 Million (August 19, 2025) – Aerodrome’s daily revenue briefly tripled that of Solana, showing strong protocol growth.
Deep Dive
1. Emissions Policy Overhaul (September 16, 2025)
Overview:
Aerodrome’s community governance is considering a plan to reduce the number of new tokens released, aiming to control inflation and better match supply with demand. Since the proposal, AERO’s price has risen about 10% in a week, reaching $1.28. The key resistance level is $1.30—if the price breaks above this, it could climb to $2, a 56% increase.
What this means:
If the emissions cut is approved, it could support AERO’s price by limiting supply growth. However, delays or disagreements within the community could slow progress or cause price drops. (Bitrue)
2. Coinbase DEX Integration (August 9, 2025)
Overview:
Aerodrome is now the default liquidity provider for Coinbase’s Base Layer 2 network, giving more than 100 million Coinbase users easy access to trade tokens native to Base. After this integration, trading volume on Aerodrome surged by 500%, and AERO’s market value reached $1.15 billion.
What this means:
This partnership strengthens Aerodrome’s position as the main decentralized finance (DeFi) platform on Base, boosting user adoption and liquidity. Still, it faces competition from other platforms like Uniswap and PancakeSwap on the same network. (AerodromeFi)
3. Swap Fees Reach $250 Million (August 19, 2025)
Overview:
Aerodrome has collected $250 million in swap fees in less than 35 weeks, doubling its growth rate from 2024. On July 18, daily revenue peaked at $2.3 million, three times more than Solana’s daily fees.
What this means:
The rising fees show that Aerodrome’s platform is being widely used, with all fees redistributed to veAERO token holders who participate in governance. However, trading volume has dropped by 40% since August, raising concerns about whether this growth is sustainable. (AerodromeFi)
Conclusion
Aerodrome’s integration with Coinbase and its growing fee revenue highlight its strong presence on the Base network. The proposed emissions changes could make AERO more scarce and valuable. Keep an eye on upcoming governance votes and whether AERO can break through the $1.30 price barrier. The big question remains: will reducing emissions help AERO weather the ups and downs of the broader market?
What is expected in the development of AERO?
Aerodrome Finance is making important progress with these key updates:
- Emissions Policy Reform (September 2025) – Control over weekly $AERO token emissions will be handed to veAERO voters through Aero Fed governance.
- Real-World Asset (RWA) Expansion (Q4 2025) – New liquidity pools for real-world assets will launch on the Base network.
Deep Dive
1. Emissions Policy Reform (September 2025)
Overview:
Starting in September 2025, Aerodrome’s Aero Fed system will give veAERO token holders the power to decide how many new $AERO tokens are released each week. Voters can choose to increase, decrease, or keep emissions the same, with a maximum limit of 1% of the total token supply per week. This change follows recent discussions aimed at reducing token emissions to help control inflation (Bitrue).
What this means:
This is generally positive for AERO because limiting the supply of new tokens could help support or increase the token’s price, assuming demand stays steady. However, if voters take too long to reach decisions or don’t participate actively, it could delay these benefits and create some short-term uncertainty.
2. RWA Expansion (Q4 2025)
Overview:
Aerodrome is expanding its involvement in real-world assets (RWAs), which are physical or traditional financial assets represented on the blockchain. Building on a partnership with Coinbase from August 2025, Aerodrome will launch new liquidity pools focused on these tokenized assets in the fourth quarter of 2025 (AerodromeFi).
What this means:
This development is somewhat positive for AERO. Real-world assets could bring in more institutional investors and liquidity, but the success of this move depends on clear regulations and how quickly users adopt these new products.
Conclusion
Aerodrome Finance is focusing on giving its community more control over token supply through governance and expanding into tokenized real-world assets. These steps aim to balance keeping the protocol sustainable while opening new growth opportunities. As emissions policy changes approach and RWA adoption grows, veAERO voters will play a key role in managing inflation while encouraging new uses for the $AERO token.
What updates are there in the AERO code base?
Aerodrome Finance is improving its technology to make liquidity more efficient, strengthen governance, and fine-tune its economic model.
- Emissions Policy Overhaul (September 16, 2025) – A proposed change to reduce token inflation and better align incentives.
- Liquidity Page Upgrade (August 9, 2025) – A simpler interface for managing liquidity provider (LP) positions and rewards.
- LP Strategy Core Logic (July 19, 2025) – New methods to rebalance funds for better capital use.
Deep Dive
1. Emissions Policy Overhaul (September 16, 2025)
Overview: Aerodrome’s community is discussing lowering the weekly distribution of $AERO tokens to reduce inflation while still encouraging liquidity.
The plan is to adjust how many tokens are given to veAERO voters each week, aiming to grow liquidity owned by the protocol without oversupplying tokens. Currently, emissions are just 1% higher than the amount of tokens locked up (as of July 2025). Tighter controls could make $AERO tokens more scarce.
What this means: This is positive for $AERO because fewer tokens being sold could help keep the price stable. However, liquidity providers might earn less in the short term if demand doesn’t rise enough to balance the lower supply. (Source)
2. Liquidity Page Upgrade (August 9, 2025)
Overview: Aerodrome updated its liquidity provider interface to make it easier to create pools, track earnings, and vote with veAERO tokens.
The new design includes real-time data showing how efficiently capital is used (for example, $8 earned per $1 liquidity in top pools) and simplifies the process of reinvesting rewards. This update came alongside Coinbase’s decentralized exchange (DEX) integration, which brings millions of users to Aerodrome’s pools.
What this means: This is neutral for $AERO. While the improved user experience can attract more liquidity, wider adoption depends on ongoing interest in assets within the Base ecosystem. (Source)
3. LP Strategy Core Logic (July 19, 2025)
Overview: Developers enhanced Aerodrome’s liquidity provider algorithms with features like adjustable fee ranges and ways to reduce losses during price swings.
These upgrades let liquidity providers set custom price ranges to collect fees, which helps reduce the impact of market volatility on their capital. Testing showed a 34 times increase in efficiency for $ZORA pools after the update.
What this means: This is positive for $AERO because better capital efficiency can attract larger, institutional liquidity providers, increasing liquidity and trading volume. (Source)
Conclusion
Aerodrome Finance is focusing on sustainable growth by controlling token emissions, improving user experience, and optimizing liquidity strategies. With Coinbase’s integration expanding its reach, the key question is whether protocol-owned liquidity can grow fast enough to offset selling pressure from inflation. Keep an eye on veAERO token lock-up rates and how fee revenues are shared.
Why did the price of AERO fall?
Aerodrome Finance (AERO) dropped 5.72% in the last 24 hours, underperforming the overall crypto market, which fell 1.87%. Here’s why:
- Profit-taking after recent gains – AERO jumped 27% in the past 60 days and 56% over 90 days, leading some traders to cash out their profits.
- Technical resistance levels – AERO couldn’t stay above key price points around $1.26 and $1.27.
- Uncertainty around governance vote – An upcoming vote on emissions policy (Sept 16–20) is causing concern about possible delays or changes in token supply.
Deep Dive
1. Profit-Taking & Market Pullback (Negative Impact)
What happened: AERO’s strong gains over the last two to three months made it “overbought,” meaning prices rose faster than usual. Meanwhile, the overall crypto market dropped 1.87%, with a total market value of about $4.03 trillion. This led traders to sell and lock in profits.
What this means:
- Trading volume for AERO fell by 33.56% to $51.9 million, showing less buying interest.
- The turnover ratio (trading volume divided by market cap) dropped to 4.67%, indicating lower liquidity, which can cause bigger price swings.
What to watch: If daily trading volume stays above $60 million, it could help stabilize AERO’s price.
2. Technical Resistance at Key Price Points (Mixed Impact)
What happened: AERO’s price hit resistance at the 61.8% Fibonacci retracement level ($1.26) and its 7-day simple moving average (SMA) at $1.27, then fell below both.
What this means:
- The Relative Strength Index (RSI) is at 51.53, which is neutral but trending down from previously high levels.
- The MACD indicator shows weakening bullish momentum, suggesting the upward trend may be losing strength.
- Immediate support is at $1.17 (78.6% Fibonacci level). If that breaks, the price could fall further to $1.06, the low point seen earlier this year.
3. Emissions Policy Vote Creates Uncertainty (Bearish Risk)
What happened: A recent Bitrue analysis highlighted an upcoming governance vote scheduled for September 16–20. This vote will decide whether to reduce the number of new AERO tokens released (token emissions).
What this means:
- Lower emissions could reduce token supply over time, which might be positive in the long run.
- However, if the vote causes delays or confusion, it could lead to short-term selling pressure.
- In the past, similar governance rumors caused AERO to drop 6.5% on August 18 (Crypto Times).
Conclusion
AERO’s recent price drop is mainly due to traders taking profits, hitting technical resistance, and nervousness ahead of the governance vote. Despite this short-term volatility, AERO’s fundamentals remain solid, including its integration with Coinbase DEX and a 55% market share on the Base network.
What to watch next: Can AERO maintain support at $1.17 before the emissions vote results? Also, keep an eye on large investors (“whales”) who currently hold 16.34 million AERO tokens for signs of buying or selling activity.