Few cryptocurrencies offer a unique blend of short-term growth potential and long-term value. But this one checks every box.
There are plenty of cryptocurrencies I’m bullish on for the long haul, but one stands out for its remarkable potential in both the short and long terms.
I’ve been a strong advocate of Aerodrome (AERO -5.36%). And with one major event on the horizon, it takes the crown as my top pick for the best cryptocurrency to buy right now.
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The king of Base
The first reason Aerodrome is so compelling is its position as the most valuable protocol built on Base, a Layer-2 blockchain developed by Coinbase Global (NASDAQ: COIN). Base has rapidly become one of the most popular Layer-2 solutions in the digital economy, thanks to its low fees, efficient transactions, and easy integration with Coinbase’s cryptocurrency exchange platform. As a result, it has attracted a wealth of users and developers, and liquidity.
One crucial thing to note is that Base itself does not have a native token. This means that while Base’s growth has been explosive, there’s no direct way to invest in it.
Enter Aerodrome. As the leading decentralized exchange (DEX) on Base and the most valuable protocol in the ecosystem, Aerodrome presents the most practical way to gain exposure to Base’s growth. This unique relationship is a key factor behind my bullish outlook on Aerodrome: It’s positioned to capture the economic value generated by the Base network.
Revenue sharing with holders
The second reason to be excited about Aerodrome lies in its innovative business model, which can be thought of like a stock that pays a dividend. The crypto doesn’t just generate revenue; it shares that revenue with its most loyal users — those who hold veAERO tokens.
To break it down, Aerodrome collects fees from its trades occurring on its platform and then distributes those fees to veAERO holders. However, simply holding AERO tokens won’t allow you to share in this revenue. To participate, you have to lock your AERO tokens in what’s known as a vote-escrow contract to receive veAERO. This contract acts as a locking mechanism that not only ensures long-term commitment from token holders but also aligns their interests with the success of the protocol.
While this may sound complex, it’s a significant opportunity for investors. With Aerodrome generating the second-most revenue of any protocol year to date (and not even being one year old), this revenue-sharing model has proved to be highly productive.
In fact, Aerodrome’s ability to distribute 100% of its revenue back into the ecosystem is a testament to its innovative design. For investors looking to directly benefit from the success of a protocol, Aerodrome stands out as one of the best opportunities in the crypto market today.
The looming tokenomics shift: Why Epoch 67 matters
Lastly, the most important reason to consider Aerodrome right now is the upcoming change in its tokenomics, or its fundamental economic characteristics. Aerodrome is currently in a growth phase, which means its token emissions (the rate at which new tokens are released) are relatively high. This inflationary phase provides the necessary fuel for rapid expansion, rewarding early participants and attracting liquidity to the platform.
However, Aerodrome’s tokenomics are set to shift in the coming weeks. Aerodrome measures time in “epochs” that last a week. The cryptocurrency is currently in Epoch 60, but in about seven weeks (Epoch 67), the community of veAERO holders will have the power to vote on reducing emissions.
This is a crucial development for the long-term value of the AERO token because it signals a transition from rapid growth to sustainable long-term value creation. By reducing the supply of newly issued tokens, veAERO holders can help drive up the value of the remaining tokens, creating scarcity and potentially leading to price appreciation.
In other words, as Aerodrome transitions from its growth phase to a more mature phase of its life cycle, it could become an even more attractive asset for investors. The reduction in token emissions, combined with Aerodrome’s leading position in the Base ecosystem, sets up the AERO token for potential long-term appreciation.
The ideal bet on Base’s future
With its unique position as the most valuable protocol on Base, its innovative revenue-sharing model, and the upcoming shift in its tokenomics, Aerodrome stands out as my favorite cryptocurrency to buy right now. Whether you’re looking for exposure to Base’s explosive growth or seeking a way to benefit from one of the most productive protocols in all of crypto, Aerodrome offers both short-term and long-term potential.
For investors willing to lock up their tokens and align themselves with the protocol’s success, the rewards could be substantial. And with the upcoming tokenomics shift on the horizon, now might be the perfect time to take a closer look and consider adding Aerodrome to a portfolio.
RJ Fulton has positions in Aerodrome Finance and Coinbase Global. The Motley Fool has positions in and recommends Coinbase Global. The Motley Fool has a disclosure policy.