Over the past four consecutive days, Aerodrome Finance [AERO] has been experiencing an upward trend, which has continued into the weekend.
AERO is up 13% over the past seven days, with hype growing amid the upcoming upgrade to make the platform multichain. How will this move affect holder revenue, TVL, and the price action of AERO?
Impact on holders’ revenue and TVL
Aerodrome Finance is built and fully operates on a single chain, which is Base. However, the team announced they would be launching a cross-chain decentralized exchange (DEX) in July, which is expected to improve revenue among other metrics.
Even as it operates on a single chain, the platform led in terms of holders’ revenue over the past month.
Aerodrome brought in $7.4 million a month for its holders, according to DefiLlama. This was more than double that of Uniswap [UNI], which operates on 43 chains with a reading of $3.3 million.
Hyperliquid [HYPE], which also operates on a single chain, followed AERO with $1.37 million. PancakeSwap [CAKE], which is built on BNB Chain but accommodates about 10 chains, and Pharaoh Exchange and Raydium [RAY] made it into the list of top 6.
Such a move to upgrade the platform to a multichain DEX is set to expand holder revenue as the user base increases.
Moreover, the Total Value Locked (TVL) on Base Chain may continue growing more rapidly with this launch. Currently, the TVL is approaching $5 billion since launch.
This discussion around the cross-chain DEX is about strengthening the revenue, TVL, and price of the altcoin. But can price action sustain bullishness even as token unlocking looms?
Will the upcoming token unlock affect AERO’s price?
On the charts, the altcoin had broken above a sideways market that had held AERO since the start of February. Over the past 14 days, only two days had closed red, indicating bullish strength in the altcoin.
Sustaining a position above the range between $0.2794 and $0.385 increases the potential to hit $0.600. However, the challenges sit at $0.450, $0.500, and $0.550, but the MACD was bullish alongside the RSI divergence indicator.
The DEX launch was bullish in that it brought more trading volume and liquidity to AERO’s pool due to the support of multiple chains.
Conversely, a slight decline in price may be anticipated, though it is not certain. This is because the upcoming token unlock of $1.32 AERO in about five days was insignificant to affect the circulating supply.
Final Summary
- AERO leads DEX platforms by holders’ revenue, with the launch of a cross-chain DEX set to amplify revenue and TVL.
- The price was trading toward $0.600, with the upcoming token unlock not expected to significantly affect supply.