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The Ultimate Cryptocurrency to Buy Today
Looking for a high growth cryptocurrency with solid fundamentals? Look no further.
Data and history show that the safest and most productive cryptocurrency investment centers are located in Bitcoin (BTC 3.68%) together with some important altcoins for example Ethereal (ETH 2.44%) and Solana (SOL 3.45%).
This strategy usually minimizes risk in the already risky cryptocurrency market, but investors looking for astronomical gains will likely have to look elsewhere, as Bitcoin, Ethereum, and Solana are likely past their most explosive days.
Unfortunately, a great deal of risk usually comes with expanding beyond these household names, as it usually involves unproven assets with no clear utility or fundamentals, as is common with meme coins. Fortunately, though, I may have found the perfect candidate that could be built for the long haul and is still early in its journey: Aerodrome (AERO 3.91%).
Image source: Getty Images.
What is Aerodrome?
The airport is a decentralized exchange (DEX) launched in 2023. It is starting to be called MetaDex because it combines some of the best features found in the most popular DEXs created to date, such as Curve AND UniswapThe Aerodrome’s unique approach makes it stand out from the crowd.
The main difference between Aerodrome and incumbent DEXs is voting. Aerodrome has an incentive model that rewards participation among users. By locking up the AERO token, users receive veAERO. They can then use this new token to vote on specific liquidity pools.
The more voting tokens users pledge to a pool, the more valuable the pool becomes, and in turn, the more AERO users receive for locking up their tokens. This creates a self-reinforcing cycle, or flywheel effect, that drives more participation and liquidity.
With its interesting voting and incentive mechanisms, Aerodrome attracts not only users, but also other cryptocurrencies looking to create liquidity, a vital component that cryptocurrencies need for longevity. Then, as more users and protocols interact with the platform, the value of the Aerodrome ecosystem grows. This growth, in turn, increases the value of the AERO token.
The cherries on top
Unlike investing in random meme coins or other obscure cryptocurrencies in the hope of astronomical gains, Aerodrome offers solid fundamentals and clear utility in the market. And there are two more aspects that could strengthen its long-term prospects.
The first advantage of the Aerodrome’s growth potential is that it is built on Baseone of the most popular emerging blockchains on the market. Launched by crypto platform company Monetary base (CURRENCY 10.53%) in August 2023, Base is known for its fast speeds, low fees, and compatibility with Ethereum.
In less than a year, Base has become the sixth most valuable decentralized finance platform (DeFi) blockchain, and at last count, Aerodrome represents nearly half of that value, a share that is continually growing.
Then there’s the second bonus. In early 2024, Coinbase Ventures announced that it had invested in Aerodrome, which was seen by many as a vote of confidence in the project due to Coinbase’s track record.
And it gets better. Coinbase has continued to invest in the project throughout this year. According to data from cryptocurrency research firm Nansen, it has invested $2.7 million since the beginning of the year.
While perhaps an exaggeration, this could be compared to a prominent figure like Warren Buffett investing in a relatively unknown company. Coinbase’s continued investment indicates that a major player in the cryptocurrency space believes in Aerodrome’s long-term potential, which should be seen as a bullish development.
Final words of advice
It should be reiterated that Aerodrome is a small market and still in its infancy, which means it carries a significant amount of risk. But if it can maintain its current trajectory, it could mean big things, especially as this bull market continues. If it does, a valuation similar to that Sushi Exchange (on the low end) or Uniswap (on the high end) hit in the last cycle would represent a gain of between five and 43 times from today’s prices.
With Coinbase backing and one of the most innovative designs on the market, Aerodrome may have just what it takes to reach these valuations. However, it is important to proceed with caution with this asset. Aerodrome should by no means constitute the majority of your portfolio, but in the right circumstances, it could deserve a small space.
Mr. Fulton has positions in Aerodrome Finance, Bitcoin, Coinbase Global, Ethereum, and Solana. The Motley Fool has positions in and recommends Bitcoin, Coinbase Global, Ethereum, Solana, and Uniswap Protocol Token. The Motley Fool has a disclosure policy.