Aerodrome’s TVL Surpasses $1 Billion, AERO Token Soars 50%

• Aerodrome dominates Base’s ecosystem, accounting for over a third of the network’s $1 billion total value locked (TVL).
• AERO’s price surged 50% as the platform led decentralized trading on Base, though trading volumes have recently declined.
• Derivatives data reveals a 28.86% drop in AERO’s volume, with open interest down 11.07%, signaling reduced market activity.

Aerodrome, a decentralized exchange (DEX) platform on the Ethereum-based Base layer-2 chain, has crossed the $1 billion mark in total value locked (TVL). Data from DeFiLlama shows a 22% rise in the past week, pushing the protocol’s TVL past the landmark $1 billion. In addition to this growth, the price of AERO, Aerodrome’s native token, has surged by 50% in the past week.

Since its launch in August 2023, Aerodrome has quickly become the top DEX on Base, leading to notable liquidity growth. Within weeks, Base’s TVL had surpassed $400 million, and this growth continued in 2024, helped by the Base ecosystem fund that launched in February. As of September 27, Aerodrome is the top protocol on Base, with its $1.02 billion TVL leading all others on the network.

Aerodrome Powers Over One-Third of Base’s TVL

As an automated market maker, Aerodrome provides users with decentralized trading through liquidity pools. Users deposit token pairs in these pools and receive liquidity provider tokens (LP tokens) in return. Staking these LP tokens allows users to earn AERO and veAERO, the governance token.

Read also: Crypto Investor Outlines Why He is Bullish on Aerodrome Finance (AERO)

Aerodrome’s dominance on Base is evident, with more than a third of the network’s TVL locked in the protocol. According to DeFiLlama, Aerodrome’s $1 billion TVL is more than the combined total of the next four largest Base protocols. This shows how important it is to the Base ecosystem’s liquidity growth.

Trading Volume Surges Across Multiple Pairs

Aerodrome has also seen increased on-chain trading volumes for assets like Ethereum (ETH), Bitcoin (BTC), USDC, and EURC. This influx has pushed the platform to the top of decentralized trading activity on Base. Also, the liquidity protocol has helped to increase market liquidity, as investors are using its pools more and more.

However, while the rise in TVL and token price suggests positive sentiment, trading volumes have experienced recent declines. Aerodrome’s price now sits at $1.05, with a 24-hour trading volume of $35 million, showing a 3.14% decline over the past 24 hours. The platform’s market cap is $676 million, with a circulating supply of 643 million AERO tokens.

AERO Derivatives Signal Decline in Trading Activity

Additionally, derivatives data shows a drop in market activity. AERO’s derivatives volume dropped by 28.86% to $6.25 million, while open interest fell by 11.07% to $4.30 million. The long/short ratio of 1.0738 indicates a slight bullish sentiment. However, significant long liquidations signal bearish pressure, with $10.36K liquidated in the last 12 hours.

The majority of Aerodrome’s derivatives trading occurs on exchanges like Binance, OKX, Bybit, and Bitfinex. Binance, in particular, has the highest trading volume. However, the overall market is seeing declining participation as traders remain cautious because of the reduced trading volume.