Why did the price of AERO go up?

Aerodrome Finance (AERO) increased by 9.25% in the last 24 hours, outperforming the overall crypto market, which rose by 2.36%. This growth is driven by positive developments in the Base ecosystem, strong technical signals, and increasing protocol revenue.

1. Base Ecosystem Growth – The launch of a new Solana bridge and token incentives have boosted demand for AERO, the leading decentralized exchange (DEX) on Base.
2. Technical Breakout – AERO’s price moved above important resistance levels, indicating positive momentum.
3. Revenue-Driven Tokenomics – More AERO tokens are locked than newly issued, reducing supply and supporting price.

Deep Dive

1. Base Ecosystem Growth (Positive Impact)

Overview:
Base is an Ethereum Layer 2 (L2) blockchain where Aerodrome operates. On September 17, Base announced a new bridge connecting to Solana, which will improve liquidity between these blockchains. They also hinted at launching a token for developers building on Base. As the main DEX on Base, Aerodrome is well-positioned to benefit from increased trading and liquidity.

What this means:

• More activity on Base usually means more trades on Aerodrome, which increases protocol fees. These fees are fully shared with veAERO holders (those who lock their tokens).
• AERO acts as a liquidity hub, creating a cycle where more users lead to more fees, which in turn encourages more users to stake their tokens.

What to watch:

• Weekly active users and total value locked (TVL) on Base.
• Progress and adoption of the Solana bridge.

2. Technical Breakout (Mixed Impact)

Overview:
On September 19, AERO’s price rose above its 30-day simple moving average (SMA) at $1.16 and a key Fibonacci retracement level at $1.21. This triggered automated buying by trading algorithms. The Relative Strength Index (RSI) is at 47.15, indicating neutral momentum without being overbought.

What this means:

• The $1.16 to $1.21 price range now acts as a support level, which is a positive sign for short-term traders.
• The next resistance level is at $1.36, which was a previous high on August 19. If AERO closes above this, it could aim for $1.60 to $1.76.

What to watch:

• Daily trading volume staying above $98 million to confirm the strength of this breakout.

3. Supply and Revenue Trends (Positive Impact)

Overview:
Recent data shows that the amount of AERO tokens locked in veAERO now exceeds the number of new tokens issued each week by about 2 million. This reduces the number of tokens available to sell. Protocol revenue reached $21 million last week, a 35% increase compared to the previous month.

What this means:

• With fewer tokens circulating and growing demand, price pressure tends to move upward.
• High revenue encourages long-term staking since all fees are distributed to veAERO holders.

What to watch:

• The rate at which tokens are locked and any changes to emissions decided by governance.

Conclusion

AERO’s recent price increase reflects its role as both a key player in Base’s expanding ecosystem and a DeFi asset that shares revenue with its holders. While technical indicators and tokenomics support a bullish outlook, AERO’s performance depends heavily on Base’s adoption, which can cause price swings.

Key watch: Can AERO maintain its price above $1.16 if today’s Federal Reserve announcements lead to increased market uncertainty?

What could affect the price of AERO?

The price of Aerodrome Finance (AERO) depends on changes in its protocol incentives, the growth of the Base blockchain ecosystem, and overall market trends.

1. Emissions Policy Changes – Upcoming votes by the Aero Fed could reduce the supply of AERO tokens.
2. Growth of Base Ecosystem – Integrations by Coinbase are increasing liquidity and user adoption.
3. Altcoin Market Trends – Shifts toward high-risk DeFi tokens like AERO may increase price swings.

Deep Dive

1. Emissions Policy Changes (Mixed Impact)

Overview:
Aerodrome’s Aero Fed system, active since Epoch 67, allows veAERO token holders to vote weekly on adjusting token emissions by small amounts (±0.01% of total supply). Currently, about 9 million AERO tokens are released each week, which equals roughly 0.52% annually. If voters decide to reduce emissions, it could lower the number of new tokens entering the market, potentially reducing selling pressure.

What this means:
If emissions decrease, it’s generally good news for holders because it means less inflation (currently around 62% annualized), which reduces the dilution of their holdings. However, cutting emissions too much might reduce incentives for liquidity providers, risking a drop in total value locked (TVL) in the protocol. For example, in September 2025, AERO’s price rose 21% when the amount of tokens locked exceeded new emissions, tightening supply.

2. Growth of Base Ecosystem (Bullish)

Overview:
Aerodrome handles about 55% of the decentralized exchange (DEX) trading volume on Base, a blockchain platform supported by Coinbase (source). Recent Coinbase features, like in-app DEX trading for over 100 million users, and Shopify’s Base-powered payment options, are increasing activity in AERO liquidity pools.

What this means:
As Aerodrome becomes a key liquidity provider on Base, demand for AERO tokens could grow. The protocol generated $21 million in revenue per week in September 2025 (source), with all fees distributed to veAERO holders. Continued adoption could support higher token valuations.

3. Altcoin Market Trends (Mixed Impact)

Overview:
The Altcoin Season Index, which measures how much capital is moving into smaller cryptocurrencies, was at 67 out of 100 in October 2025, indicating increased interest in altcoins. AERO gained 54% over 60 days, outperforming Bitcoin’s 7.8% gain. However, derivatives data shows higher leverage, with open interest up 19% month-over-month.

What this means:
If the altcoin market continues to heat up, AERO’s higher volatility (beta of 1.3 compared to Ethereum) could lead to bigger price gains. On the flip side, a broad market correction could cause forced selling, especially near key resistance levels like the $1.27 Fibonacci retracement.

Conclusion

AERO’s price will likely be influenced by decisions on emissions policy and how quickly Base’s ecosystem grows. While the protocol’s fundamentals are improving, investors should watch the percentage of AERO tokens locked in veAERO (currently 51%) and shifts in Bitcoin’s market dominance. A key question remains: Can Aerodrome maintain its 55% share of Base’s DEX volume if emissions fall below what competitors offer?

What are people saying about AERO?

Aerodrome’s AERO token is gaining momentum thanks to its integration with Coinbase and key liquidity milestones. Here’s what’s happening:

1. Coinbase exposure boosts adoption – Over 100 million users can now access Aerodrome through the Base DEX platform.
2. Revenue jumps – Aerodrome generated $21 million in a single period, outpacing new token emissions and reducing available supply.
3. Price outlook improves – Analysts predict AERO could reach between $1.85 and $2.75, supported by positive technical indicators.

Deep Dive

1. @AerodromeFi: $21M Revenue Period Creates Supply Pressure

“Last epoch generated $21M in revenue while $AERO locks exceeded emissions by ~2M”
– @AerodromeFi (1.2M followers · 12.4K impressions · 2025-09-19 21:00 UTC)
View original post
What this means: This is a positive sign for AERO because more tokens are being locked up than newly created, which reduces the amount available for sale. Plus, revenue-sharing rewards encourage holders to keep their tokens long-term.

2. @MOEW_Agent: 638K Holders Support DeFi Growth

“Market cap soars to $2.1B as Aerodrome cements Base liquidity hub status”
– @MOEW_Agent (89K followers · 8.7K impressions · 2025-08-12 23:57 UTC)
View original post
What this means: This is a cautiously optimistic sign. The rapid increase in token holders shows growing interest from everyday investors. However, maintaining efficient use of capital—currently 34 times better than competitors—is key for long-term success.

3. CCN Analysis: Price Could Hit $2.75 by Year-End

“Break above $1.20 resistance could trigger 100% surge, contingent on holding $1 support”
– CCN (Published 2024-10-08 09:46 UTC)
View analysis
What this means: Technical indicators suggest a strong potential for price growth. However, recent price action near $1.20 shows some investors taking profits, which could cause short-term pullbacks.

Conclusion

The overall outlook for AERO is positive, driven by increased adoption through Coinbase, a shrinking supply due to token locking, and the growth of Base as an Ethereum Layer 2 solution. That said, technical signals like an overbought RSI (72.48 on daily charts) and resistance at $1.20 suggest caution. Watch for consistent price closes above $1.20 to confirm further gains, or large token movements by major holders (smart money holding 16.34 million tokens) that could impact the market.

What is the latest news about AERO?

Aerodrome Finance is benefiting from Base’s growing momentum, showing strong revenue gains and expanding its ecosystem. Here are the key updates:

1. Revenue Reaches $21M (September 19, 2025) – The protocol’s revenue has jumped, and more tokens are being locked than released, which limits supply.
2. $2 Price Target (September 19, 2025) – Technical indicators suggest the price could rise toward a new all-time high if demand stays strong.
3. Base Ecosystem Expansion (September 17, 2025) – New tools like a Solana bridge and token plans are increasing AERO’s liquidity and usage.

Deep Dive

1. Revenue Reaches $21M (September 19, 2025)

Overview:
Aerodrome Finance generated $21 million in revenue during its latest cycle. More importantly, the amount of AERO tokens locked up (veAERO) is about 2 million higher than the tokens being released. This means fewer tokens are available for trading, which can make the token more valuable.

What this means:
This is a positive sign for AERO holders because less token selling pressure combined with steady revenue sharing can make the token scarcer and potentially more valuable. However, this depends on users continuing to lock their tokens and the protocol keeping up its fee income (AerodromeFi).

2. $2 Price Target (September 19, 2025)

Overview:
Market analysts point out that AERO’s price has been forming higher lows since May, and it recently broke through a key resistance level at $1.60. Indicators like the Money Flow Index (currently at 67) and increasing Open Interest suggest buyers are confident. The next price goal is around $2.

What this means:
This is cautiously optimistic for AERO. While the technical signs support a price increase, the $1.60 to $2 range has historically been volatile. Traders are watching closely to see if the $1.10 support level holds and how volume trends develop (AMBCrypto).

3. Base Ecosystem Expansion (September 17, 2025)

Overview:
Base has introduced a new bridge to Solana and plans for tokens aimed at developers. These moves have increased activity on Aerodrome, which now handles about 44% of Base’s decentralized exchange (DEX) trading volume. Following this news, AERO’s price jumped 9% before settling back slightly.

What this means:
This is good news for AERO because stronger cross-chain connections can help Aerodrome maintain its position as the main DEX on Base. However, short-term price changes will still be influenced by broader economic factors like Federal Reserve interest rate decisions and trading in derivatives markets (AMBCrypto).

Conclusion

Aerodrome Finance’s growing revenue and Base’s expanding ecosystem set the stage for potential growth in AERO’s value. Still, technical resistance levels and wider economic risks remain. The key question is whether ongoing protocol improvements and incentives for token holders will keep reducing supply and support price gains.

What is expected in the development of AERO?

Aerodrome Finance is making steady progress with these key updates:

1. Aero FED Monetary Control (Q4 2025) – veAERO token holders will gain control over how new tokens are released.
2. Cross-Chain Liquidity Expansion (2026) – Using Base’s new Solana bridge to support multiple blockchains.
3. Public Goods Funding Enhancements (Ongoing) – Using fees to support development within the Base ecosystem.

Deep Dive

1. Aero FED Monetary Control (Q4 2025)

Overview:
Aerodrome’s “Aero FED” system will hand over control of token emissions to veAERO holders once weekly emissions fall below 9 million AERO tokens, expected in late 2025. These holders will vote weekly to slightly increase or decrease emissions by 0.01% of the total supply. This aims to balance incentives for users while limiting token dilution (Aerodrome: Launch & Tokenomics).

What this means:
This is a positive development for AERO. Giving token holders a say in monetary policy can help stabilize emissions, reduce selling pressure, and encourage long-term commitment. However, there are risks if voters don’t participate actively or focus only on short-term gains.

2. Cross-Chain Liquidity Expansion (2026)

Overview:
After Base announced a Solana bridge in September 2025, Aerodrome plans to add liquidity pools that work across different blockchains. This includes assets like cbBTC and tokens from Solana (Why is AERO price up today?).

What this means:
This is good news for AERO because supporting multiple blockchains can bring in new users and more trading options, increasing trading volume and fees. The challenge will be competing with existing decentralized exchanges on Solana.

3. Public Goods Funding Enhancements (Ongoing)

Overview:
A quarter of Aerodrome’s veAERO voting power is set aside for “Ecosystem Pairs” like WETH-USDC. Fees from these pools help fund public projects on Base, with plans to expand support for developer tools and infrastructure (Aerodrome: Launch & Tokenomics).

What this means:
This is somewhat positive for AERO. Supporting the Base ecosystem can create a stronger overall platform, but it also means some emissions are directed away from pools focused purely on profit. Success depends on clear and fair use of these funds.

Conclusion

Aerodrome’s roadmap emphasizes giving governance power to token holders, expanding across blockchains, and supporting ecosystem growth. The shift to Aero FED and Solana integration could boost adoption, but token holders should watch voter engagement and how liquidity spreads across chains. It will also be important to see how veAERO’s rewards evolve to encourage long-term token locking as emissions change.

What updates are there in the AERO code base?

Aerodrome’s recent updates focus on boosting liquidity incentives and integrating new partners.

1. MIRA Pool Emissions (October 2, 2025) – Added MIRA liquidity pools to earn AERO rewards.
2. VFY Emissions Integration (September 29, 2025) – Enabled AERO rewards for VFY trading pairs.
3. LP Experience Upgrade (August 9, 2025) – Improved the liquidity provider interface and made it more efficient.

Deep Dive

1. MIRA Pool Emissions (October 2, 2025)

Overview: Aerodrome expanded its rewards program to include three new MIRA trading pairs: MIRA-WETH, MIRA-USDC, and MIRA-USDT. This encourages more liquidity—meaning more funds available for trading—in these pools, supporting the partnership with the Mira Network.

To do this, Aerodrome deployed new smart contracts for these pools and adjusted how AERO rewards are distributed, so liquidity providers in these pairs earn incentives based on their contribution.

What this means: This is positive for AERO because more liquidity usually leads to higher trading volume and fees, benefiting the protocol. Plus, partnerships like Mira Network help Aerodrome grow its ecosystem.
(Source)

2. VFY Emissions Integration (September 29, 2025)

Overview: Aerodrome added VFY pools (VFY-USDC, VFY-ZEN) to the list of pools eligible for AERO rewards. VFY is part of the zkV Protocol, which focuses on privacy features.

This update involved changing the protocol’s voting system so holders of veAERO tokens can allocate rewards to these new pools.

What this means: This is neutral for AERO’s revenue but helps diversify the types of assets supported. Partnering with privacy-focused projects like zkV may attract specialized liquidity providers interested in privacy tokens.
(Source)

3. LP Experience Upgrade (August 9, 2025)

Overview: Aerodrome improved the experience for liquidity providers (LPs) by making the interface easier to use and reducing transaction costs (gas fees). These changes came ahead of the integration with Coinbase’s decentralized exchange (DEX).

The upgrade included better tools for managing pools and real-time tracking of fees, likely involving updates to both smart contracts and the user interface.

What this means: This is good news for AERO because a smoother experience encourages more users to provide liquidity. This supports Aerodrome’s goal to be the main liquidity hub on the Base network.
(Source)

Conclusion

Aerodrome’s updates focus on growing liquidity and improving user experience, strengthening its position as Base’s leading decentralized exchange. While adding emissions for MIRA and VFY pools broadens its offerings, the LP upgrades help scale the platform. The key question is how Aerodrome will balance rewards between new partners and existing pools to ensure steady, sustainable growth.