Here’s why Aerodrome Finance’s AERO token price is soaring

Aerodrome Finance’s token rallied this week and reached its highest point since May 9 ahead of Coinbase’s integration.

Aerodrome Finance (AERO) price jumped to $0.7786, up 177% from its lowest level in March this year. This surge has brought its market capitalization to $619 million. 

AERO token jumped after Coinbase, the biggest American crypto exchange, said that it would add decentralized exchanges on its Base Blockchain to its main application.

This addition will expose Aerodrome to its 10.8 million monthly active users, possibly boosting its volume and revenue. 

To some extent, the integration is similar to Coinbase’s integration of Morpho into its platform. Morpho is an AAVE rival that facilitates borrowing and lending in a decentralized manner. Dune Analytics’ data shows that $550 million worth of Bitcoin has been collateralized for USDC on Coinbase. 

https://twitter.com/wagmiAlexander/status/1933513854467616843

AERO price also jumped after Aerodrome Finance’s network continued to dominate the DEX industry on Base. 

Data shows that the volume processed in the network has jumped 10x in the last twelve months and has just crossed the $100 billion mark. It has also beaten popular names on Base like Uniswap and PancakeSwap.

Aerodrome Finance token also jumped as the number of its token holders soared. Dune Analytics data shows that there are now 629,954 AERO token holders, a big increase from 200,000 in January. 

AERO token price technical analysis

The daily chart shows that the AERO price has been in a slow uptrend after bottoming at $0.2850 in April. It has moved above the 50-day and 200-day weighted moving averages, a sign that bulls are slowly prevailing. 

AERO has formed an ascending triangle pattern whose upper side is at $0.7786, which coincides with the 23.6% Fibonacci Retracement level. The Relative Strength Index and the MACD indicators have pointed upwards. 

Therefore, a clear breakout above this resistance will point to more gains, potentially to the 50% Fibonacci Retracement level at $1.3058, about 78% above the current level.