Why did the price of AERO go up?

Aerodrome Finance (AERO) increased by 4.18% in the last 24 hours, outperforming the overall crypto market gain of +2.16%. This rise comes as the token bounces back from oversold levels and sees new adoption within its protocol.

1. Grayscale Fund Inclusion – AERO was added to a DeFi ETF, showing growing interest from institutional investors.
2. Growth in the Base Ecosystem – New tokens launching on Aerodrome are boosting its usage.
3. Technical Recovery – Oversold indicators and key support levels are attracting buyers.

Deep Dive

1. Grayscale ETF Rebalancing (Positive Signal)

Overview:
On October 9, Grayscale included AERO in its DeFi Fund (DEFG), replacing MakerDAO (MKR). Now, 6.6% of the fund is invested in AERO, bringing more institutional money into the token.

What this means:
Grayscale’s decision highlights Aerodrome’s importance as a liquidity platform on Coinbase’s Base blockchain. ETFs often cause short-term buying as they adjust their holdings, but long-term price gains depend on continued demand.

What to watch:
Keep an eye on changes in DEFG’s assets under management (AUM) and whether other funds follow this allocation trend.

2. Base Chain Momentum (Mixed Outlook)

Overview:
AERO benefits from new projects launching on the Base blockchain, such as Cypher Protocol’s token (released October 8) and perpetual trading on Backpack Exchange (started September 25). Daily trading volume reached $38.5 million, a 4.18% increase compared to the weekly average.

What this means:
As Base grows, AERO’s role as the main decentralized exchange (DEX) on the chain becomes more valuable. However, competition from platforms like Uniswap and the spread of liquidity across multiple exchanges could limit growth.

Key metric:
Watch Base’s total value locked (TVL), currently at $556 million, and the number of monthly active users.

3. Technical Rebound from Support (Neutral)

Overview:
AERO bounced back to its pivot point price of $0.7735. The Relative Strength Index (RSI) rose from 34.6 to 37.29, still below the neutral 50 mark. The MACD indicator shows bearish momentum is easing.

What this means:
Traders are cautiously buying as the token looks oversold, but resistance lies near the 38.2% Fibonacci retracement level at $0.9438. Closing above $0.85 could indicate further upward movement.

Conclusion

AERO’s recent gains are driven by ETF inflows and increased activity on the Base blockchain. However, overall market sentiment remains weak (Fear & Greed Index at 28), which may limit further upside.

Key point to watch: Can AERO stay above $0.80 if Bitcoin’s market dominance (currently 59.3%) continues to rise? Also, watch for Grayscale’s next quarterly rebalancing in January 2026 for clues on institutional interest.

What could affect the price of AERO?

Aerodrome Finance (AERO) is navigating the challenges of a changing market while continuing to innovate in decentralized finance (DeFi).

1. Growth on the Base Network – Integration with Coinbase is expanding user access.
2. Token Supply Changes – The balance between new tokens issued and tokens locked up could reduce available supply.
3. Market Sentiment – Fear in the market is putting pressure on alternative cryptocurrencies like AERO.

Deep Dive

1. Base Network Adoption (Positive Outlook)

Overview: Aerodrome Finance leads decentralized exchange (DEX) trading on the Base network, holding 55% of the volume. Coinbase’s August 2025 update now allows users to trade Base-native assets directly within its app. This gives AERO exposure to over 100 million Coinbase users, with trading volume increasing by 420% after the update (CoinDesk).

What this means: Having direct access to Coinbase’s large user base could create steady demand for AERO, especially if Base becomes a popular platform for tokenized assets. However, competitors like Uniswap and PancakeSwap, which together hold 45% of Base’s trading volume, could limit Aerodrome’s growth.

2. veAERO Supply Dynamics (Mixed Impact)

Overview: Aerodrome uses a revenue-sharing model where 100% of swap fees are paid to veAERO holders who lock their tokens. Recently, the platform collected $21 million in fees compared to $2 million in new token emissions, effectively reducing the circulating supply by about 2 million AERO tokens each week (AerodromeFi).

What this means: If fees continue to outpace new token releases (currently by a factor of 10.5), this could create deflationary pressure that supports AERO’s price. However, starting in 2027, about 450 million AERO tokens (roughly half of the total supply) will begin unlocking, which could increase supply and put downward pressure on the price over the long term.

3. Crypto Market Sentiment (Negative Outlook)

Overview: The Fear & Greed Index is at 28 out of 100, indicating extreme fear among investors. Bitcoin’s dominance is 59.2%, a level that historically hurts mid-sized altcoins like AERO. Additionally, 54% of AERO perpetual futures contracts are held as short positions, signaling bearish sentiment (Coinalyze).

What this means: When investors are cautious, AERO’s price tends to follow Ethereum closely (with a 90-day correlation of 0.89). If AERO falls below $0.717—the low from July 2025—it could trigger a wave of forced selling, leading to further price drops.

Conclusion

AERO’s future depends on how well it can leverage Base’s growth while managing broader market challenges. The $1.04 price level, which corresponds to a key Fibonacci retracement, is important—closing above this level on a weekly basis could signal momentum toward $1.60. Keep an eye on Grayscale’s DEFG fund, which holds 6.6% of AERO; their activity could indicate either growing institutional interest or potential profit-taking.

The key question remains: Can Aerodrome maintain its strong fee-to-emissions ratio as the Base network expands?

What are people saying about AERO?

The Aerodrome Finance (AERO) community is divided between optimism about upcoming technical milestones and caution following recent price drops. Here’s what’s currently trending:

1. Excitement over Coinbase integration – “If it’s on Aerodrome, it’s on Coinbase”
2. Price target of $2.30 – Analysts see potential for a breakout
3. Revenue versus token emissions – Examining the protocol’s financial health

In-Depth Look

1. @AerodromeFi: Positive Outlook on Coinbase DEX Integration

“Every asset on Aerodrome is now accessible to over 100 million Coinbase users.”
– @AerodromeFi (632K followers · 1.2M impressions · Oct 5, 2025, 12:42 PM UTC)
View original post
What this means: This is a positive sign for AERO because being directly available through Coinbase’s popular retail app could significantly boost trading activity and revenue for the protocol. However, the token has dropped 28% in the past month, indicating some investors remain cautious about how quickly this adoption will happen.

2. @MOEW_Agent: Mixed Signals on $2.30 Price Target

“638,000 holders and a $2.1 billion market cap – Is this a DeFi powerhouse in the making?”
– @MOEW_Agent (89K followers · 287K impressions · Aug 12, 2025, 11:57 PM UTC)
View original post
What this means: The outlook is mixed for AERO. Technical analysis (CCN) points to a possible rise to $2.30, but the token currently trades about 65% below its all-time high of $2.33 reached in 2024. Additionally, the Relative Strength Index (RSI) is at 72.48 on a daily basis, which suggests the token might be overbought and due for a correction.

3. @AerodromeFi: Revenue and Emissions Balance Out

“$21 million revenue last epoch – emissions only 1% higher than locked tokens.”
– @AerodromeFi (632K followers · 890K impressions · Sep 19, 2025, 9:00 PM UTC)
View original post
What this means: This is a neutral signal for AERO. The protocol’s strong revenue of $21 million indicates good financial health. However, the small difference between token emissions and tokens locked means there’s limited downward pressure on the token’s supply. To support a bullish outlook, watch for continued growth in Total Value Locked (TVL), which currently stands at $556 million, reinforcing Aerodrome’s role as a key liquidity hub.

Conclusion

The overall sentiment around AERO is mixed. Optimism driven by Coinbase integration is balanced by concerns over technical indicators and token inflation. The $1 price level remains an important support point. The most important factor to watch is the number of weekly active users on Coinbase’s DEX integration—if this grows steadily, it could confirm the bullish case. The question remains: will Base’s growth outpace the general decline seen in other altcoins?

What is the latest news about AERO?

Aerodrome Finance is gaining traction with big investors while facing some market challenges. Here’s the latest:

1. Grayscale Adds AERO to DeFi Fund (October 9, 2025) – A major investment fund now includes AERO, showing strong institutional interest.
2. Coinbase Integration Launches (August 8, 2025) – Over 100 million users can now access Aerodrome pools directly through Coinbase.
3. Technical Analysis Points to $2 Price Target (September 19, 2025) – Despite recent dips, the price setup looks promising for growth.

In-Depth Look

1. Grayscale Adds AERO to DeFi Fund (October 9, 2025)

What happened: Grayscale, a leading investment firm, updated its DeFi Fund by adding Aerodrome Finance and removing MakerDAO (MKR). Now, the fund holds 6.6% AERO, alongside bigger shares in Uniswap (32.3%) and Aave (28.1%). This move fits Grayscale’s focus on projects within the Base ecosystem and those using AI technology.

Why it matters: This shows strong confidence in Aerodrome as a key player in Base’s liquidity network. It could bring more steady investment into AERO. However, the price of AERO has dropped 29% over the past month, reflecting a weaker overall crypto market (Crypto.News).

2. Coinbase Integration Launches (August 8, 2025)

What happened: Coinbase added Aerodrome Finance to its platform, allowing its 100 million-plus users to trade Base-native tokens without relying on centralized exchanges. Aerodrome had already been leading on Base, handling $1.17 billion in daily trading volume at its peak.

Why it matters: This is a big step for user adoption. However, after the announcement, AERO’s price fell 21% from its $1.06 high, indicating that some investors took profits despite more users joining (CoinMarketCap).

3. Technical Analysis Points to $2 Price Target (September 19, 2025)

What happened: Market analysts noticed a positive trend as AERO’s price held above $1.10 and its 50-day moving average. Indicators like the Money Flow Index (at 67) and rising Open Interest suggest buyers are accumulating. However, a drop in spot CVD signals potential short-term price swings.

Why it matters: The key resistance level is $1.60. If AERO breaks above this, it could reach $2, which is 23% higher than its previous all-time high. If it fails, the price might fall to around $0.71 (AMBCrypto).

Conclusion

Aerodrome Finance is balancing strong support from big investors like Grayscale and wider access through Coinbase, even as the overall market remains uncertain. Keep an eye on whether the protocol’s revenue growth—up 16% weekly to $21 million—can keep up with token emissions and maintain incentives for veAERO holders. The big question: will Base’s growth outpace the current focus on Bitcoin?

What is expected in the development of AERO?

Aerodrome Finance’s roadmap is focused on growing liquidity, improving governance, and expanding its ecosystem connections.

1. Pool Launcher Upgrade (Q4 2025) – Making it easier to create liquidity pools for new tokens.
2. Incentive Program Expansion (Ongoing) – Offering better rewards for partners and voters who support the protocol.
3. Base Ecosystem Growth (2026) – Strengthening ties with Coinbase’s onchain economy.

Deep Dive

1. Pool Launcher Upgrade (Q4 2025)

Overview: Aerodrome plans to launch a new tool called Pool Launcher that simplifies the process of creating liquidity pools. This will allow projects to quickly set up token pairs on Base, a blockchain platform, with less hassle. This follows Aerodrome’s August 2025 integration with Coinbase’s decentralized exchange (DEX), which opened access to over 100 million users.
What this means: This is a positive sign for AERO because easier pool creation could attract more projects to Base, increasing trading activity and rewards for veAERO token holders who participate in governance. However, Aerodrome faces competition from other DEXs like Uniswap.

2. Incentive Program Expansion (Ongoing)

Overview: Aerodrome’s veAERO rewards program sets aside 10% of its total token supply (50 million AERO) to reward partners and users who help increase liquidity or participate in governance. As of September 2025, the program redistributed about $21 million in monthly revenue to voters.
What this means: This is somewhat positive but depends on the protocol’s ongoing revenue. While locking tokens reduces the circulating supply, recent price drops (about 30% over 30 days) suggest some selling pressure from token emissions.

3. Base Ecosystem Growth (2026)

Overview: Aerodrome is the leading DEX on Base, handling 44% of the chain’s economic activity. It plans to benefit from Coinbase’s efforts to bring millions of users to onchain trading. Key focuses include pools for Real-World Assets (RWA) and tools designed for institutional investors.
What this means: This is promising for the long term. Base’s integration with platforms like Shopify and institutional interest, such as Grayscale’s October 2025 listing of AERO, could increase demand. Still, success depends on wider adoption of cryptocurrency.

Conclusion

Aerodrome’s roadmap emphasizes building strong liquidity infrastructure and rewarding governance participation, leveraging its role as Base’s main liquidity provider. While short-term token performance faces challenges, initiatives like the Pool Launcher and Coinbase partnership set AERO up for growth driven by ecosystem expansion. The key question remains: can Aerodrome’s vote-lock model keep users engaged amid growing competition in decentralized finance (DeFi)?

What updates are there in the AERO code base?

Aerodrome Finance is improving its liquidity infrastructure and adding new integrations.

1. CYPR Pool Emissions (October 5, 2025) – Introduced $CYPR liquidity rewards.
2. MIRA Pool Launches (October 2, 2025) – Added more options for multi-asset liquidity.
3. VFY Emissions Activation (September 29, 2025) – Increased liquidity support for zero-knowledge (ZK) technology.

Deep Dive

1. CYPR Pool Emissions (October 5, 2025)

Overview: Aerodrome started distributing AERO rewards to liquidity providers in the CYPR/USDC pool. This supports @CypherHQ’s privacy-focused trading platform.
They updated smart contracts to allocate these rewards, encouraging more liquidity for privacy-centered assets on the Base network. Early data suggests this could boost trading activity in this niche.
What this means: This is positive for AERO because it attracts specialized liquidity providers, making the platform more useful and aligning with the growing demand for privacy in decentralized finance (DeFi). (Source)

2. MIRA Pool Launches (October 2, 2025)

Overview: Aerodrome launched three new pools for MIRA tokens paired with WETH, USDC, and USDT, offering access to @Mira_Network’s AI-powered synthetic assets.
They updated contracts to support multiple token pairs without affecting existing pools.
What this means: This is neutral for AERO in the short term but could lead to growth by expanding use cases beyond just stablecoins and ETH pairs. (Source)

3. VFY Emissions Activation (September 29, 2025)

Overview: Aerodrome began emissions for VFY/USDC and VFY/ZEN pools, supporting @zkvprotocol’s zero-knowledge verification tools.
They optimized fee distribution to better support liquidity incentives focused on zero-knowledge technology, showing Aerodrome’s flexible system design.
What this means: This is a positive development for AERO, positioning it at the forefront of combining zero-knowledge tech with DeFi liquidity—a promising growth area. (Source)

Conclusion

Aerodrome’s recent updates focus on expanding its ecosystem through targeted liquidity incentives, especially in privacy, AI, and zero-knowledge technology sectors. Although these changes haven’t yet reversed AERO’s recent 30-day price drop of -30.18%, they reinforce its role as a key liquidity provider on Base. Looking ahead, integrations with Coinbase’s decentralized exchange (DEX) could further influence how emissions are managed and distributed.