Coinbase Ventures Makes the Largest Ever Investment in Aerodrom Finance’s AERO, Signaling Bullish Market Stance

Coinbase Ventures, Coinbase’s investing arm, has doubled down on Aerodrom Finance’s AERO, a move that market pundits have deemed a bullish signal.

Coinbase Ventures, the investing arm of major cryptocurrency exchange Coinbase, has reportedly made a significant purchase of AERO, the native token of decentralized exchange (DEX) Aerodrome Finance.

According to crypto venture capitalist Arthur Cheung, Coinbase Ventures has purchased over $20 million in AERO from the open market, marking the largest ever purchase of a liquid token by the venture fund.

Cheung highlighted Aerodrome Finance’s growing dominance within the Base ecosystem as a possible reason for Coinbase's bullish conviction.

As the largest DEX on Base, Aerodrome has quickly captured a substantial portion of the L2 DEX market, growing its volume dominance from 0% to 8% within the first half of 2023.

Aerodrome also boasts a significant presence within Base's total value locked (TVL), commanding nearly half of the total $1.5 billion as of press time.

Coinbase analyst David Han noted Aerodrome’s contribution to Base’s DEX volumes, stating that the DEX “accounted for 58% of Base’s DEX volumes in the past 7 days ($7.1B of $12.2B).”

The growth in Aerodrome’s DEX volume and TVL has also had a positive impact on AERO’s price action.

The token surged by 1400% year-over-year (YoY) and traded at $1.39 at the time of writing.

Chart showing AERO’s price action and key price levels to watch for further directional cues

A closer examination of AERO’s daily price chart revealed that the token had managed to stay above the trendline support (white line) and the Q4 support zone above $1.

While the $1.4 level had acted as a strong supply zone (red) since October, clearing this resistance could see the token aiming for $2 and its all-time high.

Hitting the $2 level would present a favorable risk-reward (RR) ratio and over 40% potential gains for those scooping up AERO at current levels.

However, a breach below the trendline and Q4 supports could dampen the bullish outlook, and these levels could serve as stop losses for swing traders considering long AERO positions.

For investors, any further bleed-out might still present discounted buys for long-term holding.