Venture Capitalist Arthur Cheong Calls Attention to This Decentralized Exchange (DEX) Altcoin He Thinks Is Primed for a Bullish Trajectory

The DeFiance Capital CEO, citing data from the analytics firm Nansen, points out to his 180800 followers on the social media platform X that Coinbase

Coinbase Ventures is making a big bet on Aerodrome Finance (AERO), a decentralized exchange (DEX) altcoin.

According to data from the analytics firm Nansen, Coinbase Ventures has been buying large amounts of AERO from the open market. The total investment is said to be more than $20 million, which is significant considering that Coinbase Ventures typically makes six-figure venture deals.

The news of Coinbase Ventures’s heavy investment in Aerodrome Finance is sparking speculation among crypto enthusiasts. Some are wondering why Coinbase Ventures is so bullish on the DEX altcoin and are predicting a bullish trajectory for AERO.

Aerodrome Finance is a trading and liquidity marketplace on Base, Coinbase’s Ethereum (ETH) layer-2 scaling solution. The project is a fork of Velodrome, a trading and liquidity marketplace originally launched on Optimism (OP), another Ethereum layer-2 scaler.

Aerodrome Finance has quickly gained traction since its launch in December 2023, thanks to its low fees, fast execution speeds and deep liquidity. The DEX currently boasts a total value locked (TVL) of around $1.3 billion, according to data from DeFi Llama.

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As Aerodrome Finance continues to grow its market share and integrate new features, such as limit orders and a decentralized autonomous organization (DAO), the project is also attracting the attention of traders and investors.

The DEX’s rising share of total DEX volume is also being highlighted by venture capitalist Arthur Cheong, who is known for his coverage of the crypto markets.

“Think about how this will play out in the next three to six months for Aerodrome Finance,” Cheong said, hinting at a possible bullish trajectory for AERO.

Cheong and Bryan Tan, head of research at DeFiance Capital, recently argued in a new analysis that Aerodrome’s TVL could triple and surge to $4 billion within a year. They also anticipate that monthly volumes could swell to $50 billion.

TVL, a key metric used to assess the health of a crypto ecosystem, refers to the amount of capital deposited within a protocol’s smart contracts. At the time of writing, AERO is trading at $1.31, down nearly 1.5% in the past 24 hours.