- Coinbase recently launched the cbBTC token, its wrapped version of Bitcoin, on Ethereum and Base.
Aerodrome Finance leads protocols rankings in terms of TVL on Coinbase’s Base network.
As a seasoned analyst with over two decades of experience in the financial markets, I’ve seen countless launches and partnerships that have shaped the crypto landscape. The recent developments surrounding Coinbase’s cbBTC token and Aerodrome Finance are nothing short of impressive.
In the past fortnight, AERO, the local currency of the Aerodrome Finance liquidity platform, has become one of the top-performing cryptocurrencies, piquing the interest of numerous investors and speculators alike.
Between the 6th and 13th of September, the value of AERO steadily climbed from $0.49 up to a multi-week peak of $0.72, effectively recovering from the decline it experienced earlier in the month.
Airfield has experienced notable advancements in securing a portion of the DEX market due to its role as a ‘deployment hub’ for protocols intending to integrate with Coinbase’s layer-2 scaling solution, Base.
As a researcher delving into the dynamic landscape of digital assets, I’ve recently observed that Aerodrome’s ecosystem has experienced significant expansion. Notably, this growth has seen AERO as the primary recipient following the launch of Coinbase’s Wrapped Bitcoin (WBTC) token.
Coinbase’s wrapped BTC launch drives AERO price
Last week, Coinbase launched its version of wrapped Bitcoin (cbBTC) to compete with similar forms of tokenized BTC assets in the market, including the category leader, WBTC, from BitGo.
As a researcher delving into the world of Decentralized Finance (DeFi), I’m excited to share that Coinbase has spotlighted several DeFi applications such as Aerodrome, Curve, and Uniswap DEXes (Decentralized Exchange Systems) which will natively support cbBTC (Coinbase-issued Bitcoin) from their inception.
This wave of liquidity from cbBTC appears to have played a pivotal role in boosting the AERO token.
In the early stages, Aerodrome Finance is nearly at the top when it comes to Bitcoin trading, as noted by an observer today.
According to TradingView’s data, the price of AERO increased from $0.55 to $0.61 on its launch day and subsequently reached $0.72 over the following 24-hour period. In simpler terms, the price initially jumped from $0.55 to $0.61 on the first day, and then continued to rise to $0.72 in the next day.
Beyond the open market, Aerodrome stands out as a significant endeavor among similar projects. Experts often highlight its distinctive placement within the Decentralized Finance (DeFi) sector as the primary factor behind its recognition.
According to DeFiLlama, the overall value secured on Aerodrome has increased by approximately 23% within the past week, reaching a total of $687.68 million as of this moment.
Renewed competition among DEXs
In June, the total monthly trading volume on DEX platforms was approximately $125 billion. This figure increased to almost $145 billion in July but dropped back down to around $135 billion in August. However, despite a decrease compared to the previous month, Aerodrome’s trading volume saw a significant rise from $7.2 billion in June to $9.9 billion last month.
As a researcher delving into the decentralized exchange (DEX) market, I’ve noticed an interesting development. By the 13th of September, Aerodrome managed to claim a noteworthy 5.17% share of the overall DEX market capitalization. While Uniswap continues to hold the majority with nearly three-quarters of the market cap, this significant change suggests an intensifying competition within the DEX sphere, which is quite intriguing.
AERO near-term outlook and price target
2024 has seen a stellar performance from AERO, as its price has multiplied over four times so far this year. Back in February, the value of AERO spiked following news that the Base ecosystem fund had invested in Aerodrome by securing a non-disclosed stake in the project.
AERO was trading at $0.684 at press time, up 22% in the last 7 days.
On a 4-hour chart, the price level of $0.75 emerges as an immediate barrier for AERO/USDT, as it was last confronted in August.
Looking ahead, analysts remain fairly optimistic about Aerodrome’s continued growth.
According to Decilizer’s analysis from this past week, the cryptocurrency AERO has demonstrated significant backing at approximately $0.44, potentially signifying a pivotal shift. If Bitcoin continues its upward momentum, it may exceed our subsequent goal of $1.25.
As a researcher studying the crypto market, I find myself optimistic about the near-term direction of the AERO/USD pair. The impressive performance of the token, combined with the increasing use of cbBTC, could provide a solid foundation for this pair to continue its upward trend.
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2024-09-18 05:44