The Quick Pulse:
Starting this week we saw a huge decline in the market which finally felt like the September shakeout arrived. Learning about the symbolism of “Sell Rosh Hashanah and Buy Yom Kippur” was fascinating to see play out as Rosh Hashanah fell on Tuesday this week. As I write this on Sunday, we are starting to see the market pick back up and feels like by Yom Kippur (this Thursday) we will see the bull market turn back on heading into a profitable Q4. How do you feel the market will shape out this week? This week is laser focused on the Labor Markets data which can play a role for the Feds decision to cut rates in the end of October. Are you Bullish or Bearish as we head into the final quarter of the year? Reviewing this monthly return related to BTC chart I’m feeling Bullish and excited for October.
Macro Pulse: What Moved the Markets
📰 Last Week Recap
The largest daily liquidation candle for ETH and SOL occured since Summer of 2023
NVIDIA announced it will invest up to $100 billion in OpenAI in a massive new partnership which in turn added $200B to $NVDA market cap
Plasma unveils “Plasma One” a Neobank built around stablecoin payments and yields.
In just 2 days stablecoin supply surpassed $7 Billion
XPL token runs to a $14B+ FDV - All presale participants get a bonus ~10k airdrop
Coinbase launches a MAG7 + Crypto equity index futures product
Trump’s Executive Order calls for SEC to open 401k access to crypto assets
SEC Plans “Innovation Exemption” allowing crypto firms to launch without prior oversight & regulation
US Jobless claims fell to their lowest level in two months coming in under expectations
Tether raises at a $500B valuation making it the most valuable private company in the world
August PCE Inflation comes in at expectations rising to 2.7% the highest since February 2025
Aster DEX breakdown available in new blocmates article, read here
Kraken closed a $500M funding round reaching a $15B valuation
📅 This Week to Watch
Tuesday, Sep 30th – 10:00 AM EST
JOLTs Job Openings – Data about job openings, hires, and separations
Tuesday, Sep 30th – 10:00 AM EST
CB Consumer Confidence – Measures consumer sentiment about the U.S. economy
Wednesday, Oct 1st – 08:15 AM EST
ADP Nonfarm Jobs – Provides an update on private sector job changes
Wednesday, Oct 1st – 10:00 AM EST
ISM Manufacturing PMI – Measures the economic health of U.S. manufacturing
Thursday, Oct 2nd – 08:30 AM EST
Initial Jobless Claims – Number of people who apply for unemployment benefits
Friday, Oct 3rd – 08:30 AM EST
September Jobs Report – Non Farm Payrolls & Unemployment Rates
Weekly Market Signal: 🟡 Neutral Bias
Cautious / Neutral Bias: Same as last week however we are heading into October so I anticipate the crypto market looking for a bounce later this week
Fear & Greed Index: 🟢 Fear
BTC | ETH | SOL
Weekly Price Action
Altcoin Spotlight 🔦 - Aerodome
TL;DR - What is Aerodome Finance?
Aerodrome Finance is the flagship decentralized exchange on Base, Coinbase’s layer‑2 network. Launched in August 2023, it brings together several AMM designs and channels all trading fees to users who lock its native AERO token for voting rights. The platform enjoys strong ties to the Base ecosystem through investment and governance participation from Coinbase Ventures. Recent updates highlight growing protocol revenue and a reduction in circulating supply, while price action remains sensitive to macro factors and technical levels.
Overview and Key Features
Aerodrome Finance aims to be the liquidity backbone of Base. It integrates multiple automated‑market‑maker (AMM) styles borrowing from Uniswap V2, Curve, Uniswap V3 and Convex to offer efficient swapping for stable and volatile assets. Users provide liquidity to earn AERO emissions, but 100 % of trading fees go to those who lock AERO into veAERO NFTs. Locking converts the utility token into a governance token and grants voting power over how future emissions are distributed. An epoch system governs these distributions weekly and rewards veAERO holders with protocol fees.
Unlike many layer‑2 ecosystems, Base has no native token. It uses ETH for gas, OP for governance, and relies on AERO as its incentive token. This has led Coinbase‑affiliated funds to acquire and lock AERO: the Base Ecosystem Fund and Coinbase Ventures have purchased AERO (without special allocations) and use it to participate in Aerodrome governance. The alignment with Coinbase helps the DEX attract liquidity and lends it credibility among Base projects.
Recent Developments
Aerodrome produced about US $21 million in revenue during a recent epoch and that more AERO was locked than emitted, tightening circulating supply. Technical analysts suggest that if AERO can break above ~US $1.60, it could target US $2, though failure to hold US $1.10 support could lead to a pullback. Base’s integration of a Solana bridge in mid‑September sparked a ~9 % rally as cross‑chain capital flowed into Aerodrome pools. These catalysts illustrate both the protocol’s growth and its sensitivity to broader market drivers.
Investment Considerations
Potential Drivers
Growth of the Base Ecosystem – As Base attracts more projects and users, Aerodrome stands to benefit as its principal DEX. Coinbase’s direct involvement through its venture arm reinforces this opportunity
Efficient Liquidity and Fee Structure – The combination of multiple AMM models allows capital‑efficient trading, and directing all fees to locked‑token holders encourages long‑term participation
Deflationary Dynamics – Recent data show emissions being outpaced by tokens locked into governance, which could reduce sell pressure if demand persists
Risk
Market & Macro Sensitivity – AERO’s price reacts to macroeconomic events and crypto market sentiment; technical resistance around US $1.60 and support near US $1.10 highlight potential volatility
Protocol Security & Dilution – Like any DeFi protocol, smart‑contract risks and front‑end attacks remain concerns. Ongoing emissions mean token supply grows, so continued adoption is needed to offset dilution.
Dependence on Base & Coinbase – Aerodrome’s success is closely tied to Base’s growth and Coinbase’s ongoing support. Competitive DEXs on other L2 networks or changes in Base’s strategy could erode its position.
Conclusion
Aerodrome Finance positions itself as the heart of Base’s DeFi ecosystem by blending innovative AMM designs with a fee‑redirection mechanism that rewards long‑term participants. Strong alignment with Coinbase and evidence of rising revenue and tightening supply point to meaningful momentum. For traders and investors, Aerodrome offers a compelling play on the Base network’s expansion, albeit one that remains susceptible to broader market dynamics and the risks inherent to emerging DeFi platforms.