Arthur Cheong Bullish on DEX Built on Coinbase-Backed Base Chain

Coinbase Ventures’ Large Investment in Aerodrome Finance

Arthur Cheong, a prominent venture capitalist and influencer in the DeFi space, recently shared his insights with his 180,800 followers on X (formerly Twitter). According to Cheong, Coinbase Ventures has made one of its largest investments in Aerodrome Finance (AERO), signaling strong bullish sentiment towards the project. Historically, Coinbase Ventures has made six-figure venture deals, but this recent investment marks a shift as they invested more than $20 million in a liquid token from the open market.

Cheong emphasized the importance of understanding why Coinbase Ventures continues to buy more AERO tokens, stating:

“Think about why they are so bullish and still buying more.”

Aerodrome Finance: A Fork of Velodrome on Base

Aerodrome Finance is a decentralized exchange (DEX) and liquidity marketplace built on Base, which is Coinbase’s Ethereum layer-2 scaling solution. It is a fork of Velodrome, a similar trading and liquidity platform that was originally launched on the Ethereum layer-2 scaling solution, Optimism. By leveraging the Base platform, Aerodrome Finance aims to provide fast, secure, and cost-effective trading solutions, capitalizing on the growing demand for decentralized finance services.

The Potential for Massive Growth in DEX Volume

Cheong and Bryan Tan, DeFiance Capital’s head of research, have been closely analyzing Aerodrome’s trajectory. They predict that the project’s total value locked (TVL) could triple in the next year, reaching a total of $4 billion. TVL refers to the total amount of capital deposited within a protocol’s smart contracts and is a key metric for gauging the health of a crypto ecosystem. As more users adopt the platform, the TVL is expected to rise significantly, indicating strong ecosystem growth.

Key Predictions for Aerodrome Finance (AERO)

• TVL Surge: AERO’s TVL could potentially triple, reaching $4 billion within the next 12 months.
• Monthly Trading Volumes: Cheong and Tan anticipate monthly volumes could soar to $50 billion, signaling a massive surge in activity and liquidity.
• Coinbase Ventures Backing: With over $20 million invested, the backing from a major player like Coinbase Ventures adds credibility to Aerodrome Finance’s long-term potential.

Current Market Status and AERO Token Price

As of now, Aerodrome Finance’s native token, AERO, is trading at $1.31. While the token has experienced a slight decline of 1.5% in the past 24 hours, its overall market position remains strong. AERO currently ranks as the 118th-largest cryptocurrency by market cap, reflecting growing interest and potential for future gains. With increasing investments and rising total value locked, AERO appears poised for further growth in the coming months.

Conclusion: Is AERO the Next Big DEX Token?

Aerodrome Finance (AERO) has certainly garnered significant attention in the DeFi space. With Coinbase Ventures backing the project, a promising increase in TVL, and an expanding share of DEX volume, AERO is poised for a potentially bullish trajectory. If predictions hold true, Aerodrome could emerge as a major player in the decentralized exchange market, offering substantial returns for early investors.

With its unique position on the Base platform and the ongoing support from venture capital, Aerodrome Finance could very well be the next big project to disrupt the decentralized finance ecosystem. Investors looking for high-potential tokens in the DeFi space should keep a close eye on AERO as it continues to gain traction and build momentum.