Aerodrome [AERO] captured part of the market gains over the past day, with the asset delivering a 16% run as of writing, adding to the 84% gain it has gathered over the past 180 days. While the asset is up in the short term, it is still 73% down from its all-time high of $2.40.
Market analysis, however, puts the short-term gain that is likely to drive the asset into higher territory on shaky ground based on two fundamental concerns that AMBCrypto has explored in this analysis.
Why is AERO bullish?
The clearest indicators of why there has been a decent surge in AERO’s price over the past day have been linked to Total Value Locked (TVL) growth, as well as the volume across DeFi exchanges.
The TVL in the market has remained on the upside over the last couple of days, with DeFiLlama reporting a rise from $306.72 million to $337.73 million at the time of writing.
The roughly $31 million rise in value points to a flow of capital coming into the market as investors deposit more while anticipating further future gains. At the same time, there has been a gradual growth in DEX Volume, where trading activity has heightened notably.
According to reports from DeFiLlama, since the 5th of August, the volume of the asset traded on the protocol has climbed by nearly 50%, adding $215.04 million.
It rose from around $305.79 million to $520.83 million at the time of reporting, suggesting a scale of growth that is often associated with high utility in the market.
Earnings remain a weak point
A major concern for AERO remains the fact that the protocol is currently running at a notable loss. DeFiLlama’s financial data for the asset shows that earnings for the protocol, which is Gross Profit minus Incentives, have fallen to negative $8.15 million.
This marks the largest quarterly loss recorded by the protocol since Q3 2025, a reading that does not strengthen the long-term outlook for investors and could add to selling pressure.
In addition to the earnings report, Token Holder Net Income for Q3 2026 is presently $10.16 million, marking its lowest level yet in the market, after Q4 and Q3 of 2024, when the protocol launched.
The decline in the market at this scale remains telling, especially as it comes at a time when the broader crypto market has been showing a bullish performance. In Q3 2025, for example, the asset returned roughly $60.25 million in Token Holder Incentives to the market.
The spot market may slow it down
There has been growing pressure stemming from the spot market as investors have shown signs of distribution. According to Spot Netflow data, the metric has turned positive, implying more inflows into exchanges than outflows, bringing the Netflow to $544,220.
Netflow measures the difference between inflows and outflows in the market. When the gap is wide, as it is in this case, there is a high chance that it adds to the pressure weighing on AERO.
For context, this has been the case for the past 48 hours. Therefore, until there is a flip in Spot Netflow, the risk of further decline remains.
Final Summary
- AERO gained 16% in 24 hours as TVL and DEX volume climbed, supporting stronger activity across Aerodrome.
- Negative earnings and rising Spot Netflow could put the rally under pressure if selling activity continues.