Aerodrome Finance (AERO) has already captured 193,000 monthly users, $23 million in monthly fees, $1.5 billion in monthly trading, and $726 million in total value locked (TVL), making it the biggest decentralized exchange right now on Layer-2 protocol Base.
In this article, let’s determine the chances of AERO hitting $3 or more in this bull market.
What Is Aerodrome Finance (AERO)?
Aerodrome Finance (AERO) is a decentralized finance (DeFi) protocol that functions as an automated market maker (AMM) and liquidity hub on the Base network.
The project aims to provide an easy-to-use platform that makes it simple for anyone to access the benefits of DeFi in the Base ecosystem.
Related: What Is Aerodrome Finance (AERO)? All You Need To Know
Red Flags Of Aerodrome Finance (AERO)
One of the red flags you should consider with Aerodrome Finance is that it does not have a maximum supply, and most investors are not a big fan of that. However, this does not mean it cannot perform well in the bull market.
It is worth noting that there are many other promising projects out there without a max cap, such as Solana (SOL) and Polkadot (DOT), which are absolute giants in the crypto space.
Now, for Aerodrome, being the largest decentralized exchange on Base, the project will definitely get a lot of attention due to being a first mover in the market. Currently, Aerodrome is performing exceptionally well and was only just launched in August 2023.
Total Value Locked (TVL)
Aerodrome’s token price is directly correlated with the total value locked (TVL), a metric used to measure the total value of digital assets locked or staked in a particular decentralized finance (DeFi) platform or decentralized application (DApp). In other words, this is arguably the most important factor when evaluating DeFi protocols.
At the time of writing, Aerodrome’s TVL is around $943 million, making it the number one DeFi protocol on Base.
AERO Price Prediction
One quantitative metric for evaluating a crypto project’s future price is market capitalization, or simply market cap.
Market cap takes into account both price and circulating supply. Take note that a high price for a cryptocurrency with few coins in circulation does not necessarily mean it is a strong investment. Market cap shows the total value of all the coins in circulation, giving you a better sense of the crypto’s overall size and influence in the market.
Here’s the formula to find the market cap of a crypto project:
Market Capitalization = Market Price * Circulating Supply
Now, let’s compute the market cap Aerodrome Finance (AERO) needs to reach in order to hit $3 or potentially more per token:
Circulating Supply – 410,514,908 AERO (CoinGecko data)
Total Supply – 991,100,550 AERO (CoinGecko data)
Max Supply – ∞
Current Price – $1.66
Market Capitalization – $681,454,747
Fully Diluted Market Cap (If all AERO tokens are in circulation) – $1,645,226,913
This information is current as of April 19th, 2024, and the token’s price, market value, and available supply are subject to change.
| For AERO to reach… | Its market cap would need to grow by… |
| $3 | $1,231,544,724 |
| $10 | $4,105,149,080 |
| $20 | $8,210,298,160 |
| $50 | $20,525,745,400 |
Note: This computation assumes the current number of coins in circulation remains constant. The market cap will be affected if the X number of locked AERO tokens are unlocked in the future.
Final Thoughts
Aerodrome’s fundamentals are strong, and the project will undoubtedly do well in the long term. However, just be on the lookout for its circulating supply. Overall, Aerodrom Finance is well-positioned to corner this market.
